Mitchell Lama/Rent Stabilization A/C Charges

[ELLENC123]

Thank you consigliere for your response. Now my problem is that we are a newly bought out Mitchell Lama into Rent Stabilization effective October of 2002. In May of 2002 under Mitchell Lama the tenants paid $110 per air conditioner for one year for which we got yearly leases. When the new owner came aboard in 2000, we still had to pay the air conditioner charges in May, but received no leases or bills -- just nasty notes if we didn't pay in May.

Now the LL is asking for the $20 per a/c per month starting in October, 2002. Since I lived in my apartment (20 years) a/c charges ran from May to June, so the tenants feel they are being double charged. I called DHCR and they said that the additional sums are added on to the base rent, which is why I asked my first question. They referred me to Advisory Opinion 91-2 where is states under paragraph d) Additional Charges that "Additional Charges for electricity for appliances such as air conditioners,.........will be included in the registered base rent at the rate charged and paid on the base date."

I am extremely confused and hope that someone out there can give me an answer.

Thank you.

[consigliere]

The $110 a year charge for an air conditioner could be paid, each May, as it always has been, or the rent could be increased by $9.17 ($110/12) a month.
 
If the second method is used, the $9.17 increase should take effect in May 2003, because your most recent $110 payment, in May 2002, covered May 2002 through April 2003.
 
If possible, it would be better to continue to pay the $110 every May as a surcharge. This would prevent it from becoming subject to the Rent Guidelines Board (RGB) increases, and it might permit an existing tenant to remove an air conditioner and stop paying for it.
 
For existing tenants, the landlord shouldn't be charging any more than this or charging any sooner.
 
DHCR Advisory Opinion 91-2 has this to say about charges for electricity used by existing air conditioners and other appliances becoming part of the rent stabilized base rent, at the Mitchell-Lama rate, for buildings that left the program (emphasis added):
 
Additional Charges
 
Additional charges for electricity for appliances such as air conditioners, washer/dryers and dishwashers will be included in the registered base rent at the rate charged and paid on the base date.  For such appliances brought into an apartment subsequent to the base date, the owner may be permitted an additional charge which, in New York City, will not become part of the base rent. These permitted charges are promulgated in Operational Bulletins as may be issued by the ORA. In New York City, the rate allowable as an additional electrical charge for air conditioners is promulgated in the Annual Update of Section B of Supplement No. 1 to Operational Bulletin 84-4. In the ETPA counties, for air conditioners brought into an apartment subsequent to the base date, the owner must apply to the District Rent Office for an Order permitting collection of the air conditioner charge, which charge becomes part of the base rent.
 

<small>[ April 02, 2003, 07:44 AM: Message edited by: consigliere ]</small>

[ELLENC123]

Thank you once again for your response. Unfortunately, the LL is not making it our choice about the a/c charges. He's charging the $19+ per month per a/c by way of a bill of arrears to the individual tenants not actually stating what it is for - when you call the managing office they say it's for a/c effective October, 2002 - and for those tenants that refuse to pay -- they got five day notices of the start of eviction. I just want to make sure that when I challenge this with DHCR, that the $19+ doesn't become part of my base rent leaving me open to a higher rental base to raise my rent on renewal.

Thank you again.

[consigliere]

Have any of the tenants filed an overcharge complaint with DHCR, citing Advisory Opinion 91-2?
 
The landlord is attempting to charge the tenants twice for the air conditioner electricity for the period October 2002 through April 2003. And he's trying to charge at a rate higher than the Mitchell-Lama rate of $110 a year, or $9.17 a month.
 
Advisory Opinion 91-2 seems to be clear that the charges for air conditioner electricity become part of the base rent and are subject to RGB increases.
 
The situation in your building is a little different, because the tenants paid the charges annually in May, when they also signed a one-year renewal lease. Under rent stabilization, tenants will have a choice of a one-year or a two-year lease.