MCI Application Denied Due to Outstanding Building-Wide Rent Reduction Order

(Decision submitted by Samantha Lyons of Catholic Migration Services, attorneys for the tenants.)

Landlord applied to the DHCR for MCI rent hikes on March 20, 2019, based on the installation of new compactors and entry/vestibule doors. The DRA ruled against landlord because a building-wide service reduction order was issued by the DHCR on Dec. 4, 2019. Landlord appealed and lost. Tenants had filed their service reduction complaint on Aug. 13, 2018, and the rent reduction was made effective as of Sept. 1, 2018. Landlord's PAR of the rent reduction order was denied on May 7, 2021, and landlord's rent restoration application was denied on Dec. 10, 2021, before the DRA ruled on the MCI application. Under the Rent Stabilization Law and Code, the DHCR can deny an MCI application if the landlord is not maintaining all required services, or if there are current hazardous or immediately hazardous violations outstanding at a building. And the existence of a building-wide rent reduction ordered by the DHCR precludes the granting of an MCI rent increase. Landlord claimed that due process had been denied, but the DRA notified landlord of the consequences of the rent reduction order while the MCI application was pending. And landlord didn't appeal the denial of its rent restoration application.

88-05 171 LLC: DHCR Adm. Rev. Docket No. KM110029RO (11/21/23)[3-pg. document]