Landlord Improperly Added MCI Increase Before Renewal Increase

Rent-stabilized tenant complained of rent overcharge based on how landlord added an MCI rent hike to tenant's rent. The DRA ruled for tenant. Landlord appealed and lost. In a prior order issued on Feb. 4, 2010, the DHCR had approved an MCI rent hike of $38.34 to be effective on July 1, 2009, but not collectable until March 1, 2010.  Landlord and tenant signed a renewal lease on April 6, 2010, for the term between May 1, 2010, and April 30, 2011, before landlord added in the MCI rent hike. After tenant's renewal lease commenced, landlord sent tenant an amended renewal lease, which added the MCI increase to tenant's base rent before calculating the 3 percent renewal increase. But Rent Stabilization Code Section 2522.4(a)(5) bars collection of an MCI rent hike during the term of a lease then in effect. So landlord couldn't collect the MCI rent hike from tenant during the 2010-2011 renewal lease term, and had incorrectly calculated the renewal increase.

BLDG Management Co., Inc.: DHCR Adm. Rev. Docket No. AP410029RO (2/27/14) [2-pg. doc.]