Full MCI Rent Hike Restored Upon Expiration of J-51 Benefits

Landlord obtained MCI rent hikes.The DHCR reduced the amount of the rent increases because landlord was receiving J-51 tax benefits. The DHCR later restored the MCI increases to the full amounts when the J-51 benefits expired. Tenants appealed, claiming that new landlord couldn't get rents restored. The DHCR ruled against tenants. It didn't matter whether there was a new landlord. Upon expiration of J-51 benefits, landlord was entitled to restore rents to the full amount of MCI rent increases. For rent-stabilized apartments, no application was needed to restore rents. For rent-controlled apartments, landlord must file a rent restoration application before the tax abatement period ends.

Various Tenants of 905 West End Avenue: DHCR Adm. Rev. Docket Nos. VA430024RT, VA430052RT (8/31/07) [2-pg. doc.]