MCI Increase Denied Where Rent Restoration Application Denied

Landlord applied for MCI rent hikes based on facade restoration. The DRA ruled against landlord because there was an outstanding building-wide rent reduction. Although landlord had filed an application to restore rent while the MCI application was pending, it was denied after inspection showed that the decreased service hadn’t been restored.

Landlord appealed and lost. Landlord argued that the DRA should have delayed ruling on the MCI application while its appeal of the order denying rent restoration was pending. But, by law, an MCI rent increase can’t be granted when there is an outstanding building-wide rent reduction for failure to maintain required services. If a landlord files an application to restore rent while an MCI application is pending, the denial of the MCI will be put on hold pending the outcome of the rent restoration application. If, as in this case, the rent restoration is denied, an order denying the MCI will then be issued. Any subsequent appeal against the order denying the rent restoration will be taken into consideration upon the filing of an appeal against the MCI denial. In this case, landlord’s PAR of the order denying rent restoration was also denied.  So the denial of the MCI application was upheld.

480 East 188th Street: DHCR Adm. Rev. Docket No. ZA610034RO (4/2/15) [1-pg. doc.]