Maximum Collectible Rent Set by DHCR Can't Be Waived

Rent-controlled tenant complained to the DHCR of rent overcharge after receiving a notice of Maximum Collectible Rent (MCR) effective Jan. 1, 2023, indicating that the MCR was $1,529.61. Tenant claimed that she had been paying $1,514.47 per month for over a year. Tenant also argued that the MCR and Maximum Base Rent (MBR) should've been reduced when a 2007 MCI increase was revoked. The DRA ruled against tenant, finding no rent overcharge.

Tenant appealed and won in part. While the MCR for the apartment was increased to $1,514.47 effective Jan. 1, 2019, the MCR increase was denied as of Jan. 1, 2020, based on landlord's failure to meet the violation correction criteria. The next increase wasn't made effective until Jan. 1, 2022. So, the RA's finding that the MCR was $1,551.02 as of Jan. 1, 2023, was incorrect. The DHCR noted that a landlord can't waive an MBR/MCR increase because it's granted by DHCR order and becomes part of an apartment's rent history. So the fact that landlord charged only $1,514.47 in 2022 didn't result in waiver of the rent increase of $1,529.61 granted by the DHCR, and the second cyclical increase on the 2022 MBR/MCR grant can be based on the $1,529.61 figure. 

Austin: DHCR Adm. Rev. Docket No. LV420019RT (12/7/23)[3-pg. document]