DHCR Properly Applied 2% MCI Rent Hike Limit to Tenants' Rents

The DHCR's Rent Administrator granted landlord's application for MCI rent hikes based on installation of an intercom, security cameras, new roof, and exterior restoration. Tenants appealed and lost. They claimed that the DRA's order violated DHCR policy by ordering a rent increase greater than 2 percent of their rents. The DHCR explained that the 2 percent limitation policy referred to the collectability of the rent increase from rent-stabilized apartments, not the amount of the increase itself. So, during any 12-month period, landlord's collection of the temporary MCI rent increase can't exceed 2 percent of the rents in effect on April 1, 2019, rent roll data submitted with landlord's MCI application. Any excess rent increase beyond the initial 2 percent increase must be spread forward in similar increments. There was no error in the DRA's order.

Miller, Bryant-Glandon, Ganis: DHCR Adm. Rev. Docket Nos. JS410004RT, JQ410019RT, JP410029RT (9/15/22)[2-pg. document]