Initial MBR Order of Eligibility Needed

Rent-controlled tenant complained of a rent overcharge. The DRA ruled for tenant and set the maximum collectible rent (MCR) at $182 effective Jan. 1, 2006. Landlord appealed and lost. The DHCR found that landlord wasn't entitled to MCR increases under MBR Orders of Eligibility issued since 1998, because there was no initial Computed MBR Order of Eligibility. Landlord then filed an Article 78 petition, claiming that the DHCR's decision was unreasonable. Landlord pointed out that she had obtained many MBR increase orders in the past. The court sent the case back to the DHCR for reconsideration. The DHCR ruled for landlord in part. While there was no proof in the DHCR's records that landlord ever applied for a Computed MBR Order for the building, landlord should be allowed to file one now. The DHCR would then recalculate tenant's legal rent.

Henschke: DHCR Adm. Rev. Docket No. VJ420001RP (10/12/07) [2-pg. doc.]