DHCR Won't Apply HSTPA Provisions to MCI Application Decided before June 14, 2019

Landlord applied for MCI rent hikes based on elevator upgrading. The DHCR ruled for landlord. Tenants appealed and lost. Tenants claimed that landlord filed its application more than two years after completion of the MCI work and that the application therefore was untimely.

The DHCR disagreed. Among other things, tenants argued that the MCI increase initially granted should be revoked based on changes to the MCI law provisions made in June 2019 under the HSTPA. But the MCI increase in question was initially granted by the DRA on Sept. 13, 2013, well before HSTPA enactment. The proceeding was later reopened to give tenants an opportunity to submit objections to the MCI, and the DRA found that none of those objections had any merit. So tenants hadn't raised any substantive grounds during the reopened proceeding for revoking or modifying the previously granted MCI rent increase. It's DHCR policy that MCI rent increases that were granted prior to the enactment of the HSTPA won't be reopened for reconsideration solely in order to apply HSTPA provisions to the approved rent increase. The DRA correctly refused to revoke the granted rent increase solely on applying the provisions of the HSTPA. 

10 West 65th Street Tenants Association: DHCR Adm. Rev. Docket No. LM430012RT (1/15/25)[5-pg. document]