First Rent Includes Vacancy Allowance

Tenant complained of a rent overcharge. The DRA ruled for tenant, and landlord appealed, claiming that it should have been allowed to collect a 71/2 percent vacancy allowance under Rent Guidelines Board Order No. 18 because it didn't collect a vacancy allowance under Rent Guidelines Board Order No. 17. The DHCR ruled against landlord. Tenant's apartment was previously rent-controlled and first became subject to rent stabilization during the period of Guideline No. 17. The first rent of rent-stabilized tenant is considered to include a vacancy allowance. And, under Guideline No. 18, no vacancy allowance could be collected if one had been collected under Guideline No. 17. So landlord couldn't get a second vacancy allowance under Guideline No. 18.

2857 Properties: DHCR Adm. Rev. Dckt. No. FG610139RO (8/26/97) [2-page document]