Retroactive MCR Increase Denied

Rent-controlled tenant complained of a rent overcharge. The DRA ruled for tenant and found that the Maximum Collectible Rent (MCR) for the apartment as of Jan. 1, 2001, was less than the amount landlord was collecting from tenant. Landlord appealed. He claimed that he was entitled to 7.5 percent rent increases retroactive to 1988 for MBR cycles from 1988 to 1999 granted by another DRA order issued in 2005. The DHCR ruled against landlord. While the DRA's other order granting MBR increases raised the amount of tenant's current rent, this rent increase was not retroactive. Rent increases under rent control take effect only prospectively, from the date of any DHCR order granting the increase.

Chaban: DHCR Adm. Rev. Docket. Nos. UC420014RO & UE420042RO (11/28/06) [3-pg. doc.]