DHCR Notes Changes to MCI Rent Increase Collectability under HSTPA

The DRA granted landlord's application for MCI rent hikes based on installation of a new boiler/burner. Tenant appealed and lost. Tenant didn't cite any errors by the DRA but simply complained that his renewal lease and apartment registration didn't contain the correct legal regulated rent. The DHCR noted that changes to the law concerning collectability of MCI increases under the Housing Stability and Tenant Protection Act affected collectability of MCI rent increases. Under Rent Stabilization Law Section 26-511.1(a)(8) and City Rent and Rehabilitation Law Section 26-405.1(a)(8), the collection of any MCI increase cannot exceed 2 percent in any year from the effective date of the order granting the increase over the rent set forth in the schedule of gross rents, with collectability of any dollar excess above said sum to be spread forward in similar increments and added to the rent as set in future years. Upon vacancy, the landlord may add any remaining balance of the temporary MCI increase to the legal regulated rent. But, for any renewal lease commencing on or after June 14, 2019, the collection of any rent increases due to MCIs approved on or after June 16, 2012, and before June 16, 2019, cannot exceed 2 percent in any year for any tenant in occupancy on the date the MCI was approved.

Robinson: DHCR Adm. Rev. Docket No. GX610041RT (9/17/19) [2-pg. doc.]