Landlord Waited Too Long to File MCI Application

Landlord applied to the DHCR for MCI rent increases based on installation of a boiler/burner. The DRA ruled against landlord, who appealed and lost. Rent Stabilization Code (RSC) Section 2522.4(a)(8) precludes an MCI rent increase when the application is filed more than two years after the installation is completed. Landlord filed its MCI application in October 2018 although the work was completed in 2015. Landlord argued that it didn't obtain a final electrical sign-off from DOB until January 2017. While the installation may have been physically operational before an electrical sign-off was received from DOB in September 2015, landlord claimed it had to wait for issuance of the final sign-off in order make a full submission to the DHCR.

But the RSC envisions governmental sign-offs submitted with the application to be filed within two years of the physical completion of the work, and gives a reasonable extension of time when a landlord can demonstrate a delay, beyond its control, in obtaining the approvals for which it promptly applied within the two-year period. And the  code doesn't create a new two-year filing period dating from the time governmental approvals are actually obtained. The fact that delays caused by Con Edison and the DOB may have delayed the issuance of government sign-offs didn't change this result. 

BLDG Management Co., Inc.: DHCR Adm. Rev. Docket No. HO420001RO (2/10/22)[2-pg. document]