Landlord Can Get Improvements Rent Hike Despite Rent Cut Order

September 30, 1994

LVT Number: 9145

(Decision submitted by Blaine Z. Schwadel of the Manhattan law firm of Rosenberg & Estis, P.C., attorneys for the landlord.) Tenant complained of a rent overcharge. Landlord argued that it could charge for improvements made while the apartment was vacant. The DRA disallowed the rent increase for improvements because a prior DHCR order had frozen tenant's rent based on reduced services. The DRA found that tenant had been overcharged approximately $26,000, including triple damages. Landlord appealed. The DHCR allowed landlord to collect the 1/40th increase for the improvements.

(Decision submitted by Blaine Z. Schwadel of the Manhattan law firm of Rosenberg & Estis, P.C., attorneys for the landlord.) Tenant complained of a rent overcharge. Landlord argued that it could charge for improvements made while the apartment was vacant. The DRA disallowed the rent increase for improvements because a prior DHCR order had frozen tenant's rent based on reduced services. The DRA found that tenant had been overcharged approximately $26,000, including triple damages. Landlord appealed. The DHCR allowed landlord to collect the 1/40th increase for the improvements. It didn't matter that a rent cut was in effect.

New York Properties Trust: DHCR Adm. Rev. Dckt. No. GE 410018-RO (8/31/94) [5-page document]

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