Many HSTPA Revisions to MCI Provisions Can't Be Applied to Pending PARs

Landlord applied for MCI rent hikes based on exterior restoration with related consultant services, as well as a heating system conversion. The DRA ruled for landlord, granting the rent increases. Tenants appealed and lost. Among other things, they argued that changes made to MCI provisions by the HSTPA in 2019 should be applied to landlord's application.  

The DHCR pointed out that the language of the HSTPA fails to expressly state that the act applies to pending MCI appeals. While separate sections of the HSTPA expressly direct the DHCR to apply the new law, the act only refers to certain types of non-MCI claims that were pending when the HSTPA was enacted in June 2019. The absence of such express statements with respect to pending MCI appeals indicates that the HSTPA isn't intended to apply to such cases. However, as reflected in this PAR decision and others, the HSTPA does specifically state that certain revised provisions on collectability will be applied to MCI rent increases under the circumstances described in the DHCR's order. Specifically, for any renewal lease commencing on or after June 14, 2019, the collection of any rent increases due to any MCIs approved on or after June 16, 2012, and before June 16, 2019, cannot exceed 2 percent in any year for any tenant in occupancy on the date the MCI was approved.

85 East End Avenue Tenants Association: DHCR Adm. Rev. Docket No. GO410022RT (1/28/22)[2-pg. document]