Useful Life of Kitchen Improvement Hadn't Expired

Tenant complained of a rent overcharge. The DRA ruled against tenant. Tenant appealed, claiming that landlord shouldn't have been given a 1/40th increase for kitchen improvements made before tenant moved into the apartment in 1997. Tenant showed that landlord had made similar kitchen improvements to the apartment in 1990 before prior tenant moved in. The useful life of the old kitchen improvements hadn't expired, and so, under DHCR regulations, landlord couldn't collect any rent increase for new improvements. Tenant said the four-year rule shouldn't apply to prevent examination of the useful life, which was more than four years. The DHCR ruled for tenant and reduced his rent by that portion of any 1/40th increase based on the new kitchen improvements.

Reichman: DHCR Adm. Rev. Dckt. No. MI410132RT (3/15/01) [4-pg. doc.]