Loft Board Included Appliance Surcharge in Tenant's First Rent

Loft tenant complained of a rent overcharge. Tenant moved into the loft in 1974 although the Loft Board didn't set the initial legal regulated rent until 2004. Landlord started charging tenant surcharges for a washing machine and dishwasher in 2005. Tenant claimed that the appliances had been installed by landlord and were included in the first rent set by the Loft Board. Landlord claimed that it was entitled to collect the surcharges under DHCR Operational Bulletin 2005-1. The DRA ruled for tenant, finding that any appliance surcharges were included in the initial rent set by the Loft Board. Landlord appealed, claiming that the Loft Board applied Rent Guidelines Board increases only to tenant's prior rent, and that landlord could charge tenant for newly discovered appliances after that. The DHCR ruled against landlord. It didn't matter who installed the appliances or whether the Loft Board knew about them. What matters is that the appliances were in place when the Loft Board set the rent and the unit became rent stabilized. Any change in tenant's rent after that can be based only on circumstances arising after that.

Alan Feierstein, LLC: DHCR Adm. Rev. Docket No. VC410042RO (12/20/07) [3-pg. doc.]