Lease Didn't Contain Notice of Pending MCI Application

Landlord applied for MCI rent hikes based on an elevator upgrade. The DRA ruled for landlord and increased tenants' rents. One tenant appealed, claiming that his vacancy lease didn't contain any notice of landlord's pending MCI application. Tenant argued that he shouldn't have to pay the rent increase. The DHCR ruled for tenant in part. Tenant moved into the building while landlord's MCI application was pending. His vacancy lease contained no clause advising tenant of the pending application. So landlord couldn't collect any retroactive MCI rent hike for tenant's vacancy lease term. However, as long as tenant's form renewal lease contained language stating that the rent was subject to any additional adjustment authorized by a DHCR order, landlord could collect the MCI rent hike under tenant's renewal lease term.

350 West 55th Street: DHCR Adm. Rev. Docket No. TK430073RT (3/6/08) [3-pg. doc.]