MCR Based on Unique Circumstances

Rent-controlled tenant complained of a rent overcharge. He claimed he had lived in the apartment since 1949, and had been charged a commercial rent because he also worked in the apartment as a photographer. The DRA ruled for tenant, finding that the apartment was rent-controlled. The DRA also found that the MCR for tenant's apartment was $307 from May 1981 to January 1997, and that it increased to $1,443 as of Feb. 1, 1997. Landlord and tenant both appealed. Landlord claimed that the MCR should be set by looking at all comparable apartment rents, not just rent-controlled apartments. Tenant questioned the DRA's method altogether. The DHCR ruled against landlord and for tenant in part. The DHCR reduced the 1997 MCR to $1,021, and explained that there were unique and peculiar circumstances that warranted the amount of rent increase determined by the agency. Those circumstances were that the tenant had been in the apartment since 1949, the prior landlord had restructured the apartment, the tenant used the apartment for commercial activity as well as a residence, and the apartment was worth more, given its configuration and location. The apartment was a duplex on West 57th Street, with a full bath, kitchen, two bedrooms, library, maid's room, and balcony overlooking the living room. There was a two-story ceiling in the living room and a floor-to-ceiling window. The DHCR also compared the rent-controlled rents registered in 1984 in the zip code area of landlord's building and the surrounding areas.

140 W. 57th St. Corp./Morrin: DHCR Adm. Rev. Dckt. Nos. LB420074RO, LC420003RT (1/27/99) [11-pg. doc.]