Date of MCI Increase Delayed to Match Clearance of "C" Violations

Landlord applied for MCI rent hikes based on pointing and other facade work. The DRA ruled for landlord, granting rent increases. Tenants appealed and won in part.

Tenants argued that the effective date of the MCI rent hike should be delayed from Nov. 1, 2010, because a DHCR rent reduction order was in effect at that time, as well as "C" violations and stop-work orders. The DHCR ruled that, since the DHCR restored rents and the stop-work order was fully rescinded before the MCI rent increase order was issued on Nov. 15, 2013, these prior orders didn't affect the MCI rent increase effective date.

Also, at the time that landlord's MCI application was pending, the DHCR procedure was to investigate "C" violations raised by tenants during application processing. If a landlord submitted proof that violations were cured while the MCI application was pending with the submission of HPD records showing that the "C" violations were removed from HPD's database, then an MCI increase could be granted, and the effective date of the increase would be the date the HPD records were submitted to the DRA.

So, since landlord submitted HPD proof of correction on June 21, 2013, the MCI increase effective date should be changed from Nov. 1, 2010, to June 21, 2013. The rent increase effective date was now Aug. 1, 2013, which was the first rent payment date 30 days after the violations were deemed corrected.

Rutherford: DHCR Adm. Rev. Docket No. BX430040RT (11213/19) [4-pg. doc.]