421-a Rent Surcharge Wasn't Included in Base Rent

March 26, 2018

LVT Number: #28279

Rent-stabilized tenant of a building receiving 421-a tax benefits complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $447, including interest. Tenant appealed and lost. Tenant claimed that landlord improperly collected retroactive 2.2 percent 421-a surcharges. But the DHCR found that the DRA correctly calculated lawful rent increases after the base rent date four years before the complaint was filed. Any 421-a surcharge added was separate from the base rent and not included when tenant's rent was increased. 

Rent-stabilized tenant of a building receiving 421-a tax benefits complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $447, including interest. Tenant appealed and lost. Tenant claimed that landlord improperly collected retroactive 2.2 percent 421-a surcharges. But the DHCR found that the DRA correctly calculated lawful rent increases after the base rent date four years before the complaint was filed. Any 421-a surcharge added was separate from the base rent and not included when tenant's rent was increased. 

Noda: DHCR Adm. Rev. Docket No. FP410020RT (1/12/18) [4-pg. doc.]

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