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Fuel Cost Adjustment – DOUBLE COLLECTION

NYC Rent Regulation: Rent Control/Rent Stabilized, DHCR Practice/Procedures

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Fuel Cost Adjustment – DOUBLE COLLECTION

Postby elderlytenant » Mon Feb 25, 2008 1:12 pm

Fuel Cost Adjustments are already a part of MBR and shown on line 7 of Part B of Form RN-26 and included in MBR shown on line 9 of form RN-26. Line 15 in part C of RN-26 require Fuel Cost Adjustments to be broken out and stated separately from MCR for the first of the two years in biennial period. Line 9 of RN26s.1 similarly requires fuel cost adjustment for second of the two years in the biennia1 periods to be shown and added.

I have checked these forms for several of prior biennial periods and found that the amounts shown on line 15 of RN-26 and line 9 of RN-26s.1 were always 0 (zero) as Fuel Cost Adjustments were already a part of MBR. For 2008-09 biennial period, however, I find that the amounts shown on these lines have amounts repeated from line 9 of RN-26 and are being added on top of MBR which already includes Fuel Cost Adjustments resulting in double collection of fuel costs adjustment. There is no significant change in the structure of the forms from prior periods. Are there any changes in DHCR policy or are there any other circumstances or particular scenarios which would warrant this double collection of Fuel Cost Adjustments? Quick answers are not available from either DHCR or the landlord’s office.

Thanks in advance.
elderlytenant
 
Posts: 102
Joined: Sat Aug 05, 2006 6:34 am
Location: New York City

Postby elderlytenant » Sat Mar 01, 2008 6:47 am

Got double counting of Fuel Cost Adjustment reversed and new corrected forms RN-26 and RN-26s.1 issued by the landlord’s office.

Error was due to confusing and conflicting directives on DHCR forms particularly Line 1 of RN-26s.1, which says amount on that line is from Line 3 of short form RN-26S or Line 9 of long form RN-26. Line 3 of short form RN-26S is MBR before Fuel Cost Adjustment while Line 9 of long form RN-26 is after Fuel Cost Adjustment. So, the instructions should have said Line 9 of long form RN-26 less Fuel Cost adjustment. Any new person filling the forms is liable to make such errors.
elderlytenant
 
Posts: 102
Joined: Sat Aug 05, 2006 6:34 am
Location: New York City


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