Building-Wide Rent Reduction Bars MCI Rent Hike

Landlord applied for MCI rent hikes based on a boiler/burner installation. The DRA ruled against landlord and denied any rent increase due to an outstanding building-wide rent reduction order based on a reduction in services. Landlord appealed, claiming that the time to appeal the rent reduction order hadn't expired and that a rent restoration application was pending before the DHCR. The DHCR ruled against landlord. DHCR Policy Statement 90-8 provides that an MCI rent hike is barred when there is a building-wide rent reduction order in effect. Landlord filed its MCI application in November 2004. Shortly thereafter, the DRA granted the rent reduction order. In December 2004, landlord filed the first of five rent restoration applications. Landlord also filed a PAR of the rent reduction order. In May 2005, the DHCR denied landlord's PAR of the rent reduction order. In April 2005, the DRA denied landlord's first rent restoration application. Landlord filed a second rent restoration application five days later. This second application was denied in August 2005. Landlord filed a third rent restoration application seven days later. This third application was expedited and denied on April 24, 2006. The DRA denied landlord's MCI application two days later. Landlord's fourth and fifth rent restoration applications were filed after the order denying the MCI application was issued. In November 2006, the DHCR found that services had been restored. Since there was no rent restoration application pending at the time the DRA issued the order denying the MCI application, the DRA correctly denied any MCI rent hikes based on the outstanding rent reduction order.

317 West 89th Street: DHCR Adm. Rev. Docket No. UE430065RO (6/5/08) [4-pg. doc.]