MCR Set Based on Unique Circumstances

Rent-controlled tenant complained of a rent overcharge. The DRA ruled against tenant and found that the MCR was $600 per month, effective Jan. 1, 1998. Tenant appealed, claiming that the DRA improperly calculated the MCR increase for the period from 1976 through 1998. The DHCR ruled against tenant. Tenant had signed rent-stabilized renewal leases between 1976 and 2004. Tenant hadn't challenged landlord's treatment of her as rent stabilized until she filed her overcharge complaint. Given this long period of time, landlord was entitled to adjustment of the MCR based on unique and peculiar circumstances. Landlord's good-faith error didn't warrant freezing tenant's rent at the level in effect 30 years ago. So the DRA properly deemed MBR increases for the period between 1976 and 1998.

Young: DHCR Adm. Rev. Dckt. No. TB420055RT (7/28/05) [3-pg. doc.]