Improvements Made to Fire-Damaged Building

September 30, 2000

LVT Number: 14441

Tenants were forced to temporarily move out of landlord's building after a fire. Rents were reduced by the DHCR to $1.00 per month while repairs were made. Landlord asked the DHCR what rent could be charged to tenants when they moved back in. In an opinion letter, the DHCR stated that landlord could collect a 1/40th rent increase for the installation of new equipment not in place before the fire, without tenant consent. But landlord couldn't collect a 1/40th increase for any portion of the cost of new equipment covered by fire insurance.

Tenants were forced to temporarily move out of landlord's building after a fire. Rents were reduced by the DHCR to $1.00 per month while repairs were made. Landlord asked the DHCR what rent could be charged to tenants when they moved back in. In an opinion letter, the DHCR stated that landlord could collect a 1/40th rent increase for the installation of new equipment not in place before the fire, without tenant consent. But landlord couldn't collect a 1/40th increase for any portion of the cost of new equipment covered by fire insurance. The DHCR approval wasn't required, but for rent-controlled tenants, landlord must notify the DHCR of the rent increases.

DHCR Opin. Ltr. by Charles Goldstein (10/5/99) [3-pg. doc.]

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