Landlord Seeks Rent Hike for Rent-Controlled Apartment

Landlord who owned a converted co-op apartment sought an increase in rent-controlled tenant’s maximum rent based on unavoidable increases in operating costs for the apartment. Tenant’s rent was $386 per month, and Rent Control Regulations Section 2202.10(a) permitted a rent increase for this reason if tenant’s rent didn’t cover landlord’s costs for the apartment. Landlord said that she paid the co-op corporation that owned the building more than this amount every month. The DRA ruled against landlord. No applications for MBR increases had been filed for the apartment for a number of years. Landlord appealed and lost. Landlord argued that the building managing agent refused to file for MBR increases and that landlord was unable to apply individually. But rent control regulations permit MBR rent increases every two years to reflect increased operating and maintenance costs. Landlord is bound by the actions of the managing agent, and isn’t entitled to an alternative rent increase if the managing agent failed to comply with the MBR program.

37 West 93rd Street: DHCR Adm. Rev. Docket No. XD420001RO (5/15/09) [4-pg. doc.]