Landlord Can Collect MCI Increase After J-51 Benefits Expire

October 16, 2014

LVT Number: #25788

Rent-stabilized tenant complained of rent overcharge because landlord didn't notify tenant in all his leases that an approved MCI rent hike would be restored after it was temporarily reduced by landlord's receipt of J-51 tax benefits. The DRA ruled for tenant. Landlord appealed and won. The building was a class A multiple dwelling built in 1951 that was subject to rent stabilization whether or not landlord received J-51 tax benefits. The only requirement for restoring MCI increase billing after expiration of the J-51 benefits was for landlord to file a notice with the DHCR.

Rent-stabilized tenant complained of rent overcharge because landlord didn't notify tenant in all his leases that an approved MCI rent hike would be restored after it was temporarily reduced by landlord's receipt of J-51 tax benefits. The DRA ruled for tenant. Landlord appealed and won. The building was a class A multiple dwelling built in 1951 that was subject to rent stabilization whether or not landlord received J-51 tax benefits. The only requirement for restoring MCI increase billing after expiration of the J-51 benefits was for landlord to file a notice with the DHCR. Landlord filed this notice, and wasn't required to provide any additional notice to tenant. The rent overcharge finding was revoked.

Beach Haven Apartments Associates LLC: DHCR Adm. Rev. Docket No. AR210022RO (8/28/14) [2-pg. doc.]

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