Amount of Increase Adjusted Due to J-51 Benefits

November 1, 2002

LVT Number: 16181

Five years after granting landlord MCI rent increases, the DHCR issued an order adjusting the rent increases based on the fact that landlord also received J-51 benefits for the work done. Landlord appealed, claiming that granting the adjustment at this point violated the four-year rule for rent overcharge claims. The court and appeals court ruled against landlord. The DHCR had the authority to adjust the MCI increases at any time. The adjustment didn't involve examination of tenant's base rents.

Five years after granting landlord MCI rent increases, the DHCR issued an order adjusting the rent increases based on the fact that landlord also received J-51 benefits for the work done. Landlord appealed, claiming that granting the adjustment at this point violated the four-year rule for rent overcharge claims. The court and appeals court ruled against landlord. The DHCR had the authority to adjust the MCI increases at any time. The adjustment didn't involve examination of tenant's base rents.

72A Realty Assocs. v. DHCR: NYLJ, 10/28/02, p. 23, col. 2 (App. Div.1 Dept; Williams, PJ, Buckley, Sullivan, Lerner, JJ)

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