FUEL COST ADJUSTMENTS

I recently took over my father's rent controlled apartment. Will you please explain the fuel cost adjustments to me so I can understand it better.

                                        J.F., Astoria

The New York State Division of Housing and Community Renewal (DHCR) each year allows landlords to pass-on a portion of their fuel costs to rent controlled tenants. This fuel pass-along may be adjusted upwards or downwards depending on the figures that the DHCR publishes every March. The figures are based on fuel price changes between the beginning and end of the prior year.

For 2007, most of the fuel types have decreased.  The #6 oil was decreased from $7.13 (last year) to $3.43 per room.  All price changes in fuel are stated on Part II of the Fuel Cost Adjustment papers. PLEASE NOTE: When there is a decrease in fuel, the landlord must pass along this credit to the tenant and refund the difference retroactively to January 1st.  In the event this credit is not passed onto the tenant, DHCR will issue a suspension order and the landlord will have to refund the tenant all fuel payments made for that year.

In order for a landlord to qualify for a fuel-pass along increase, he must first certify that essential services are being maintained in the building. If there is a rent reduction order in effect for the landlord's failure to provide heat and hot water, all collection of fuel cost adjustments are suspended during the time of the reduction and for 12 months following the date of a rent restoration order. PLEASE NOTE: Buildings that do not qualify or have not qualified a for Maximum Base Rent increase may be eligible for a Fuel Cost Adjustment.

Fuel Cost Adjustments are retroactive to January 1st of each year provided the landlord files the report within 60 days after NYS DHCR releases the fuel price change. If the landlord misses the May 1st deadline, the fuel increase will not take effect until the first day of the month immediately following the filing of the application and the landlord will not be eligible to collect the fuel increase retroactively.

The "Owner's Report, Certification and Notice of Fuel Cost Adjustment Eligibility" form RA-3310, consists of four pages in five parts (parts I through V), and is sent directly to the tenant from the landlord.  No prior approval or docket number is necessary in order for your landlord to begin collecting the increase.  If you believe the Fuel Cost Adjustment papers are incorrect, you have 33 days to challenge it.