DRA Sets Rent-Controlled Rent Based on Equities

New landlord asked the DRA to increase rent-controlled rents in the building based on equities. Tenants had paid $70 per month until 1974, and after landlord made building improvements, were paying $207 per month. When the building was put up for sale, tenants claimed that their rents should be $40 per month, the 1943 registered rent. The DRA ruled for landlord and increased the 1991 MCR to $160 for each tenant. Tenants appealed and lost. The rent increases were based on MCIs and the fact that tenants' rents were unfairly low. The building and area were improved, and there had never been any finding of decrease in services at the building.

Ferlitto: DHCR Adm. Rev. Dckt. No. GA230289RT (2/5/03) [9-pg. doc.]