Landlord Must Request Increase in MCR

The DRA ruled that tenant's MCR under rent control was $157 as of July 1, 2009. Landlord appealed, seeking modification of the order. Landlord claimed that the DHCR's Rent Control Rent History Report didn't mention that a J-51 tax benefit had expired after 12 years. The DHCR ruled against landlord. The History Report lists the most recent adjustments to the MCR and MBR, and showed a 79 cent rent decrease effective March 30, 1976, due to the J-51 tax abatement. The History Report didn't show the later removal of the J-51 abatement, but this wasn't the DRA's error. A rent adjustment based on the removal of a tax abatement isn't automatic when J-51 expires. Landlord must apply to the DHCR for a restoration of rent and then receive an order granting its application. Since landlord never applied for restoration of the 79 cent rent reduction, the History Report remained correct.

231 West 149th Street: DHCR Adm. Rev. Docket No. YB420037RO (9/24/10) [2-pg. doc.]