Landlord Can Keep Collecting Improvement Rent Hike Despite Rent Cut Order

(Decision submitted by Jack Kuttner of the Manhattan law firm of Kucker Kraus & Bruh, LLP, attorneys for the landlord.) Facts: Tenant complained of a reduction in services. The DRA ruled for tenant, finding that landlord didn't provide window screens and storm windows to tenant's apartment. The DRA's order reduced tenant's rent to ``the level in effect prior to the most recent guideline increase which began before the effective date of this order.'' Tenant's monthly rent was $800 and had been increased from prior tenant's rent of $400 based on both guideline increases and ``1/40th'' apartment improvement increases. Tenant interpreted the DRA's order to mean that his rent was reduced to $400. Landlord appealed, seeking clarification. The DHCR ruled that the rent reduction was equal to a guideline percentage only and that landlord could still collect the 1/40th increase over prior tenant's rent. Tenant appealed. Court: Tenant loses. The DHCR's explanation for distinguishing between a guideline increase and individual apartment improvement increases was reasonable. Guideline increases were based on annual increases in the cost of maintaining services, so the appropriate penalty for failure to maintain services was cutting the rent by the most recent guideline increase. On the other hand, permitting 1/40th increases was to encourage apartment improvements. So it didn't make sense to eliminate those rent increases as an additional penalty.

Miller v. DHCR: NYLJ, p. 30, col. 4 (3/26/97) (Sup. Ct. Kings; Belen)