Sublet Allowance Doesn't Apply to Tenant's Lease

January 1, 2001

LVT Number: 14683

Tenant's lease term runs from July 1, 2000, through June 30, 2001. Landlord approved a sublet, starting July 1, 2000. When the sublet began, Rent Guidelines Board Order 31 was in effect and no sublet surcharge was allowed. Landlord asked the DHCR if he could collect a sublet surcharge starting on Oct. 1, 2000. On that date, Rent Guidelines Board Order 32 took effect, and a 10 percent sublet surcharge was permitted. In an opinion letter, the DHCR said no. The applicable sublet surcharge is the one in effect at the time the tenant's lease began, and only if it was a renewal lease.

Tenant's lease term runs from July 1, 2000, through June 30, 2001. Landlord approved a sublet, starting July 1, 2000. When the sublet began, Rent Guidelines Board Order 31 was in effect and no sublet surcharge was allowed. Landlord asked the DHCR if he could collect a sublet surcharge starting on Oct. 1, 2000. On that date, Rent Guidelines Board Order 32 took effect, and a 10 percent sublet surcharge was permitted. In an opinion letter, the DHCR said no. The applicable sublet surcharge is the one in effect at the time the tenant's lease began, and only if it was a renewal lease.

DHCR Opin. Ltr. by Charles Goldstein (7/24/00) [2-pg. doc.]

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