No Increase Due to Failure to Maintain Services

January 1, 1997

LVT Number: 11143

Landlord applied for MCI rent hikes. The DRA ruled for landlord, and tenants appealed, claiming that there were rent reductions in effect based on landlord's failure to maintain required building services. The DHCR ruled for tenants and revoked the MCI rent increases. Landlord appealed. The court and appeals court ruled against landlord. The Rent Stabilization Code permits the DHCR to deny MCI applications when landlord isn't maintaining all required services or to grant the application on condition that such services will be restored within a reasonable period of time.

Landlord applied for MCI rent hikes. The DRA ruled for landlord, and tenants appealed, claiming that there were rent reductions in effect based on landlord's failure to maintain required building services. The DHCR ruled for tenants and revoked the MCI rent increases. Landlord appealed. The court and appeals court ruled against landlord. The Rent Stabilization Code permits the DHCR to deny MCI applications when landlord isn't maintaining all required services or to grant the application on condition that such services will be restored within a reasonable period of time. The DHCR's decision to revoke landlord's MCI rent increases was reasonable since there was a rent reduction order in effect at the time the DRA first granted the MCI rent increases.

Residential Mgmt. v. DHCR: NYLJ, p. 32, col. 2 (12/19/96) (App. Div. 1 Dept.; Rosenberger, JP, Ellerin, Wallach, Tom, Mazzarelli, JJ)

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