MCR Increased for Rent-Controlled Successor Tenant

Tenant claimed that she had pass-on rights to a rent-controlled apartment and asked the DHCR to rule on this question. The DRA ruled for tenant and set the maximum collectible rent (MCR) at $572, effective Jan. 1, 2008. Tenant appealed, claiming that the MCR should be computed based on prior rents actually charged and paid, and that landlord was time-barred from demanding a higher rent. Tenant claimed she paid landlord $387 per month in 2007. The DHCR ruled against tenant. The DRA computed the MCR and the maximum base rent (MBR) based on the agency's records for the apartment. Although landlord may have charged tenant or prior tenant rents that were lower than the MCRs, the DHCR isn't required to compute the MCR upon the lower rent. Tenant wasn't claiming that the MCR itself was incorrectly calculated.

Pereyra: DHCR Adm. Rev. Docket No. WJ420026RT (11/18/08) [2-pg. doc.]