Renewal Lease Didn't Contain MCI Increase Rider

Tenant complained of a rent overcharge. He claimed landlord prematurely collected an MCI increase not provided for in tenant's most recent lease renewal. The DRA ruled for tenant. There was no rider attached to tenant's two-year renewal lease, starting Sept. 1, 1986, that allowed for the collection of the MCI rent increase during the term of the lease. Landlord appealed, pointing out that there was such a rider attached to tenant's first lease, which ran for one year between Sept. 1, 1985, and Aug. 31, 1986. Since tenant's lease was renewed on the same terms and conditions as the first lease, the MCI increase should be legal. The DHCR ruled against landlord. Tenant protection regulations require landlord to provide specific notice to tenant in a lease or lease renewal that an MCI application is pending and that the rent is subject to a rent increase.

J. DeBenedictus Bldg. Corp.: DHCR Adm. Rev. Dckt. No. EL-810310-RO (5/17/95) [2-page document]