MCI Increases Collectible Before Rent Reduction Order Were Added to Rent

Rent-stabilized tenant complained of rent overcharge based on a prior DHCR rent reduction order. The DRA ruled for tenant and ordered landlord to refund $1,873, including triple damages. Landlord appealed and won, in part. The DRA found that the base rent date was June 21, 2011, six years before tenant filed the complaint. The apartment rent was reduced due to a service reduction effective July 1, 2011. This barred landlord from collecting any rent increase until the rent was restored by the DHCR. But landlord was entitled to an MCI rent increase starting in 2016, which was collectible in 2017 after the rent was restored. Landlord argued that the six-year base date was incorrect. The DHCR agreed, based on the high court's April 2020 ruling in Regina Metropolitan v. DHCR. But this was harmless error since no overcharge occurred more than four years before tenant filed his complaint. The DHCR removed the triple damages. And, because the MCI order was collectible prior to the issuance dates of several rent reduction orders, the DRA mistakenly found that landlord wasn't entitled to collect MCI arrears. The total overcharge was $89. 

Round Oaks Properties, LLC: DHCR Adm. Rev. Docket No. IM910057RO (7/30/20) [6-pg. doc.]