Landlord Waited Too Long to Collect MCI Rent Hike

September 30, 2008

LVT Number: #20754

Tenant complained of a rent overcharge when landlord began charging for an MCI rent hike that it hadn't previously collected. The DRA ruled for tenant. Landlord appealed. Landlord admitted that after the base date four years earlier, it started collecting the MCI rent hike that became collectible before the base date. The amount of the rent hike awarded had been subject to a 6 percent annual cap, and included a temporary retroactive increase. The DHCR ruled against landlord. The MCI rent hike in question was effective Feb. 1, 2001.

Tenant complained of a rent overcharge when landlord began charging for an MCI rent hike that it hadn't previously collected. The DRA ruled for tenant. Landlord appealed. Landlord admitted that after the base date four years earlier, it started collecting the MCI rent hike that became collectible before the base date. The amount of the rent hike awarded had been subject to a 6 percent annual cap, and included a temporary retroactive increase. The DHCR ruled against landlord. The MCI rent hike in question was effective Feb. 1, 2001. Since landlord failed to commence timely collection of the increase, it waived its right to do so.

Group Kappa Corp.: DHCR Adm. Rev. Docket No. WE110046RO (7/10/08) [2-pg. doc.]

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