Landlord Didn't State Relationship with Contracting Company

Landlord applied for MCI rent hikes based on the installation of a new boiler/burner. The DRA ruled for landlord, and tenants appealed. They claimed that landlord was the contractor for the boiler/burner installation and that landlord falsely stated on its MCI application that there was no financial relationship between landlord and the contractor. The DHCR reviewed landlord's application and found that landlord checked ''no'' in response to the question of whether there was a financial relationship between the contractor and landlord. But landlord also provided information on the application showing that he was president of the contracting company and partner of the building owner entity. So even though landlord's application contained a serious error, tenants didn't prove that landlord intended to deceive the DHCR. The DHCR ruled for tenants in part by delaying the effective date of the MCI increases until the date that landlord provided clarifying information.

Mandell: DHCR Adm. Rev. Dckt. No. LA130038RK (7/10/98) [3-page document]