Landlord Refiled MCI Rent Increase Application Too Late

The DRA denied landlord’s application for MCI rent hikes based on the installation of a roof, parapet, and camera system because there was an outstanding rent reduction order for the building. Landlord later refiled, and its MCI application was again denied. Landlord then appealed and lost.  Landlord filed for a rent restoration 60 days after the denial of a prior rent restoration application, and refiled the MCI application 90 days after the prior MCI application was denied. Therefore, landlord claimed, the two-year filing limit on MCI applications should be waived.

The DHCR disagreed. Policy Statement 90-8 states that if an MCI application is denied due to an outstanding building-wide rent reduction order, the two-year time limit for filing an MCI application will be waived only if landlord restores services and files for a rent restoration within 60 days of the service reduction order and refiles the MCI application within 90 days of the MCI denial order. In this case the rent reduction order was issued in 1993. The first rent restoration application, which was denied, was filed in 1998, more than 60 days after the first denial of rent restoration. So landlord’s MCI application didn’t qualify for waiver of the two-year filing rule. Landlord’s application was filed more than two years from the date the work was completed and therefore must be denied. 

Grand View LLC: DHCR Adm. Rev. Docket No. YL110034RO (8/13/15) [2-pg. doc.]