Effective Date of MCI Increase Delayed Four Years

(Decision submitted by David Hershey-Webb of the Manhattan law firm of Himmelstein McConnell Gribben Donoghue & Joseph, who represented the tenants.)

Landlord applied for MCI rent hikes based on public area restoration and mailbox installation. The DRA ruled for landlord. Tenants appealed, claiming that an HPD Class "C" lead paint violation barred any rent increases. The DHCR ruled against tenants, who then filed an Article 78 court appeal. The court ruled for tenants and sent the case back to the DHCR for reconsideration. In 2012, the DHCR asked landlord to submit proof that HPD violations had been removed. Landlord showed that the violation had been dismissed and removed from HPD records on July 21, 2011. Landlord maintained that the violation was corrected before the DRA issued its order. But it was long-standing DHCR policy that, due to its hazardous nature, Class "C" lead paint violations must be removed from HPD's database before an MCI increase can be granted. The effective date of the MCI rent increase was changed from Nov. 1, 2007, to Sept. 1, 2011, which was the first rent payment date 30 days after issuance of HPD's violation removal.

Ivy Court Tenants Association: DHCR Adm. Rev. Docket No. AP430013RP (4/26/13) [6-pg. doc.]