Retroactive MBR Increase Doesn't Result in High-Rent Deregulation

(Decision submitted by David Hershey-Webb of the Manhattan law firm of Himmelstein, McConnell, Gribben, Donoghue & Joseph, attorneys for the tenants.) Landlord applied for high-rent/high-income deregulation of tenant's rent-controlled apartment in 2006. The DRA ruled against landlord because landlord didn't show that tenant's maximum collectible rent was at least $2,000 on the date landlord sent tenant the income certification form. Landlord appealed and lost. Landlord showed that the DHCR had, by this time, issued an order granting an MBR rent increase for tenant retroactive to Jan. 1, 2006. Landlord argued that the DRA should have waited for the outcome of landlord's MBR application before ruling on landlord's deregulation application. In its deregulation application, landlord stated that tenant's rent was $1,934.48 as of May 30, 2006. And, although landlord later obtained an MBR increase, the increase wasn't in effect at the time landlord sent tenant the ICF in early 2006. The DRA had correctly ruled that tenant's apartment didn't qualify for high-rent deregulation in 2006.

Nagel: DHCR Adm. Rev. Docket No. UH420013RO (12/11/06) [3-pg. doc.]