Landlord Can't Collect Fuel Cost Adjustment After June 14, 2019

LVT Number: #30684

Rent-controlled tenant challenged the DRA's order that the monthly maximum collectible rent (MCR) was $3,752 effective Jan. 1, 2018; that the 2019 fuel cost adjustment (FCA) was $9.19 per room per month; and the collectible cumulative FCA from 1980 to 2019 was $42.06 per month. The DRA pointed out that, effective June 14, 2019, the Housing Stability and Tenant Protection Act of 2019 (HSTPA) eliminated the FCA and that landlord could no longer collect the FCA after June 14, 2019. Tenant appealed, claiming that landlord continued to collect the FCA after HSTPA went into effect.

Rent-controlled tenant challenged the DRA's order that the monthly maximum collectible rent (MCR) was $3,752 effective Jan. 1, 2018; that the 2019 fuel cost adjustment (FCA) was $9.19 per room per month; and the collectible cumulative FCA from 1980 to 2019 was $42.06 per month. The DRA pointed out that, effective June 14, 2019, the Housing Stability and Tenant Protection Act of 2019 (HSTPA) eliminated the FCA and that landlord could no longer collect the FCA after June 14, 2019. Tenant appealed, claiming that landlord continued to collect the FCA after HSTPA went into effect. The DHCR dismissed tenant's PAR. If landlord was violating the DRA's order, tenant could file a noncompliance proceeding with the DHCR or seek relief in a court of competent jurisdiction. The DHCR had no legal authority in rent control cases to issue a rent overcharge order that can be entered as a judgment.

Mooney: DHCR Adm. Rev. Docket No. HV420017RT (1/7/20) [2-pg. doc.]

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