Landlord Waited Five Years to Collect MCI Rent Hike

Rent-stabilized tenant complained of rent overcharge because landlord didn't start collecting an MCI rent hike until November 2011, five years after the DRA granted the increase. The DRA ruled for tenant, finding that landlord hadn't started collecting the MCI increase within a reasonable time. Landlord was ordered to refund $763, including interest. Landlord appealed and won. Landlord argued that collection of the MCI increase was stayed pending tenant's PAR of the rent increase. The PAR was decided in landlord's favor but wasn't decided until late August 2011. The DHCR also had permitted landlord to collect the MCI increase starting on Nov. 1, 2011, in a related building. The DHCR pointed out that tenant's PAR of the MCI rent increase stayed collection only of the temporary retroactive portion of the increase, not of the permanent MCI increase. But the DHCR had ruled in a prior case involving the related building that landlord could start collecting the increase in November 2011.

Clinton Equities, LLC: DHCR Adm. Rev. Docket No. CO210002RO (11/21/14) [4-pg. doc.]