No MCR Increase Where Adjusted MBR Reached

Rent-controlled tenant complained of a rent overcharge based on electricity charges for the use of his apartment air conditioners. Landlord pointed out that it obtained an MCI increase in 1997 for rewiring and therefore was permitted to charge tenant an air-conditioning surcharge. The DRA ruled for tenant, found that his 2012 MCR was $2,650, and that there was no fuel cost adjustment. Tenant had the right to sue for damages in court if landlord collected more than the legal rent. Landlord appealed, claiming that the DRA failed to include MCR increases for 2001, 2002, and 2003 in its calculation. The DHCR ruled against landlord. The agency's rent history records contained calculations for MBRs and MCRs from 1994 through 2012. the DRA had correctly disallowed MCR increases for 2001 and 2003 because the MCR had already reached the adjusted MBR after landlord received the first MCR increase in each of the two-year MBR cycles in 2000 and 2002. The DRA also correctly limited collection of the 2005 MCR increase so that the MCR increase didn't exceed the adjusted MBR.

Ten Sheridan Associates, LLC: DHCR Adm. Rev. Docket No. AU420026RO (2/12/13) [2-pg. doc.]