HPD Never Issued MBR Order of Eligibility

Rent-controlled tenant complained of a rent overcharge after landlord increased his rent from $478 to $642 in January 2007. The DRA ruled for tenant and reduced tenant's maximum collectible rent (MCR) to $250. The DRA found that no computed order of eligibility had ever been issued for the apartment, so the rent was reduced to the level in effect since March 1, 1974. Landlord appealed. Landlord admitted that it made a clerical error when it set tenant's 2007 rent increase. But landlord pointed out that the DHCR had granted five prior MBR increase applications since 1994 despite the apparent lack of an initial order of eligibility by HPD before the DHCR took over the administration of rent control. The DHCR ruled for landlord. Since the DHCR had already granted MBR increases for the apartment, the case should be sent to the MBR Rent Administrator to compute an initial MBR for the apartment. In the meantime, the rent reduction order will remain in place.

154 West Realty Corp.: DHCR Adm. Rev. Docket No. VK420074RO (3/6/08) [2-pg. doc.]