MCI Increase Granted for Rewiring with Related Wall Repair

The DHCR DRA granted landlord's MCI rent increase application based on rewiring with related wall repair. Tenant appealed and lost. He claimed that no rewiring was performed in his apartment other than new wires from the basement to the panel box. But tenant didn't raise this claim before the DRA and couldn't raise it for the first time on appeal. The DHCR noted that the HSTPA amended ETPA Section 4(6)(d)(3) on June 14, 2019, so that an MCI rent increase couldn't exceed 2 percent in any year from the effective date of the order granting the increase over the rent set forth in the schedule of gross rents filed with the MCI application. Any greater amount must be spread forward in similar increments and added to the rent as set in future years. Upon a vacancy, the landlord can add any remaining balance of the temporary MCI increase to the legal regulated rent. 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 increase was approved.

Katzenberg: DHCR Adm. Rev. Docket No. GO910006RT (10/2/19) [1-pg. doc.]