Landlord Can't Collect MCI Rent Hike from Tenant During Vacancy Lease Term

The DHCR granted landlord's application for MCI rent hikes based on facade work. One tenant appealed, claiming that he wasn't subject to an MCI rent increase during the term of his vacancy lease, signed in November 2019. The DHCR ruled for tenant. Under RSC Section 2522.5(d)(4) and established DHCR precedent, a new tenant can't be charged an MCI rent increase that goes into effect during the term of his vacancy lease if that lease didn't contain a specific clause advising tenant of the docket number of a pending MCI application. Since tenant's vacancy lease contained no such provision, landlord couldn't charge him the MCI increase during his vacancy lease term. Landlord could start collecting the MCI rent increase from tenant when tenant's renewal lease began, provided the renewal lease contains the general authorization provision for adjustment of the rent pursuant to a DHCR order.

Calandra: DHCR Adm. Rev. Docket No. IP110001RT (5/27/22)[2-pg. document]