J-51 Offset Issued More than Four Years After MCI Order

(Opinion letter submitted by Karen Schwartz-Sidrane of the Hewlett law firm of Sidrane & Schwartz-Sidrane LLP.) Landlord asked the DHCR the following question: If the DHCR approves an MCI rent hike and landlord collects the rent hike for more than four years before the DHCR issues a J-51 offset order reducing the amount of the collectible MCI rent hike, must landlord adjust tenants' rents? In an opinion letter, the DHCR said yes. Under DHCR policy and prior DHCR rulings, J-51 offsets apply even when they relate to rent hikes collected more than four years before the offset order is issued.

DHCR Opin. Ltr. by Michael B. Rosenblatt (10/19/04) [3-pg. doc.]