Landlord Properly Applied MCI Rent Increase Approved by DHCR

June 28, 2023

LVT Number: #32626

Rent-stabilized apartment tenants sued landlord claiming that landlord sought improper application of MCI rent hikes granted by the DHCR. The court denied tenants' request for a ruling in their favor without trial, and granted landlord's request for a declaration that the rent landlords could charge in tenants' renewal lease commencing Oct. 1, 2019, was $2,486.62 and that starting on Jan. 1, 2020, landlord was permitted to add $44.93 to tenants' monthly rent, and that on Jan. 1, 2021, landlord was permitted to add an additional $0.85 per month to tenants' rent.

Rent-stabilized apartment tenants sued landlord claiming that landlord sought improper application of MCI rent hikes granted by the DHCR. The court denied tenants' request for a ruling in their favor without trial, and granted landlord's request for a declaration that the rent landlords could charge in tenants' renewal lease commencing Oct. 1, 2019, was $2,486.62 and that starting on Jan. 1, 2020, landlord was permitted to add $44.93 to tenants' monthly rent, and that on Jan. 1, 2021, landlord was permitted to add an additional $0.85 per month to tenants' rent. Based on the plain language of the rent stabilization law and the DHCR's advisory bulletins, the 2 percent annual incremental MCI rent increase was intended to be added to the base rent in subsequent years for as long as the increase was payable. 

Traub v. RSD 920, LLC: Index No. 159504/2019, 2023 NY Slip Op 31785(U)(Sup. Ct. NY; 5/25/23; Hagler, J)

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