MBR Rent Hikes Denied Because Landlord Didn't Pay DHCR Fee

Landlord applied for 2018-19 maximum base rent (MBR) increases. After processing landlord's application, the DRA mailed MBR fee payment notices to landlord, but landlord didn't respond. So, the DRA issued an order denying landlord's 2018-19 MBR application based on landlord's failure to respond to the fee payment notices. Landlord then filed a challenge to the MBR order, saying that it had paid the fee in November 2017 via mail and that it hadn't been returned by the post office. The DRA denied landlord's challenge.

Landlord appealed and lost. Landlord didn't dispute that it received the Sept. 27, 2017, MBR fee notice. Landlord claimed that this was the only notice received, that it made timely payment, and that the DHCR failed to send any final or delinquency notice to advise of the DHCR's nonreceipt of payment. But DHCR records showed that it mailed a notice to landlord on Sept. 27, 2017, and Dec. 27, 2017. The DHCR also sent a final notice on April 27, 2018. These notices were not returned to the DHCR as undeliverable. Landlord also was instructed by the DHCR not to combine payments with any other building, and that landlord must not mail the payment to any DHCR office. Also, landlord's check was still outstanding as of April 2019. 

London Terrace Gardens: DHCR Adm. Rev. Docket No. HT420016RO (10/1/19) [4-pg. doc.]