Rent Cut Order Issued

Landlord applied in 1986 for MCI rent hikes based on installation of new plumbing, tiles, and walls. In 1987 tenants complained of a reduction in building-wide services, based on a number of conditions. The DRA ruled for tenants and reduced their rents. Landlord appealed; its PAR was denied in 1991. In the meantime, the DRA ruled for landlord in 1988 on its MCI application. Tenants appealed, and in 1993 the DHCR ruled that landlord couldn't collect the MCI increases while the rent cut for reduced services was in effect. Landlord then appealed both of the DHCR's PAR rulings. The court ruled for landlord, finding that landlord didn't get timely notice of the 1991 order and that the 1993 order should therefore be revoked. The DHCR appealed. The appeals court reversed and reinstated the DHCR's rulings. Although landlord received late notice of the 1991 PAR ruling upholding the rent cuts, it was given the required amount of time to file an appeal of that decision. Landlord didn't do so and never filed applications to restore the rents. The 1993 order, barring landlord from collecting MCI increases until the rents were restored, was proper.

Chelrae Estates, Inc. v. DHCR: NYLJ, p. 26, col. 5 (3/18/96) (App. Div. 1 Dept.; Milonas, JP, Wallach, Ross, Mazzarelli, JJ)