Landlord Can't Raise Rent for Renovation Costs After Fire

(Decision submitted by David Hershey-Webb of the Manhattan law firm of Himmelstein, McConnell, Gribben, Donoghue & Joseph, attorneys for the tenant.) Landlord asked the DHCR for permission to increase rent-stabilized tenant's rent after a fire that made tenant's apartment uninhabitable. Before tenant moved back in, landlord installed new equipment and made other improvements costing $25,000. Landlord argued that the apartment was vacant when the improvements were made, so it was entitled to a 1/40th rent increase without tenant consent for the cost of improvements under Rent Stabilization Code Section 2522.4(a)(1). The DHCR ruled against landlord, which appealed and lost. When tenant was forced to move out temporarily, she filed a complaint with the DHCR based on a reduction in services. The DHCR reduced tenant's rent to $1 per month while the apartment was uninhabitable. Tenant also told landlord she didn't want any new equipment other than appliances. The DHCR rationally ruled that, for purposes of the Rent Stabilization Code provision in question, the apartment wasn't "vacant" for the six months tenant couldn't live there. Tenant continued to pay a reduced rent, and the apartment was only temporarily unoccupied.

Columbus 95th Street LLC v. DHCR: Index No. 102019/10, NYLJ 1202473629072 (Sup. Ct. NY; Diamond, J; 9/13/10)