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DHCR Increases Surcharges for Tenant-Installed Appliances

On July 14, 2009, the Division of Housing and Community Renewal (DHCR) issued Ammended Supplment No. 1 to Operational Bulletin 2005-I, which increased the monthy surcharges owners can collect from rent controlled and rent stabilized tenants who buy and install their own appliances. The updated surcharges take effect immediately (which are outlined in the chart below) increased for all categories of appliance. Additionally, gas-powered dryers have been added as a new category of appliances.


Unless a lease provides otherwise, owners are not required to allow tenants to install washing machines, dryers or dishwashers. However, where a tenant requests permission from the owner to install such appliance or appliances, whether permanently installed or portable, and the owner consents, the owner may collect a surcharge or surcharges. This surcharge or surcharges are not permitted to become a part of the legal regulated or maximum rent for the purpose of computing guidelines or their increases under the Rent Laws or Regulations. Owners may only collect these surcharges going forward, not retroactively, when an unapproved appliance is discovered. Additionally, any service or repair that may be required of these appliances are not required to be provided by the owner.


“Electrical exclusion: means the tenant pays for electricity; “electrical inclusion” means the owner pays for electricity. DHCR may make a downward adjustment of the surcharge where a tenant pays for heating of hot water. Any claim made by an owner that an appliance installed by a tenant has damaged the owner’s property or plumbing are not within the jurisdiction of DHCR, but rather are handled by the courts.


The increases set forth in the chart below take effect as of October 1 of each year and will remain in full effect until September 30, 2010. If DHCR does not, in any given year issue an annual update, the permissible monthly surcharges then in effect shall continue until there is a subsequent annual update.