6% Cap Based on Rent Listed in MCI Application

Landlord sued to evict rent-stabilized tenant for nonpayment of rent. The court ruled for landlord and ordered tenant to pay $4,200 in back rent. Tenant appealed. Tenant disputed the collectibility of MCI increases included in his rent. The appeals court ruled for tenant in part. Tenant couldn't challenge the legality of the DHCR orders granting the MCI increases in the eviction case. But landlord had miscalculated the increases. The 6 percent cap on the collectibility of the MCI increases set forth in the Rent Stabilization Code must be based on the rent in effect at the time of landlord's application for the MCI and not on the subsequent legal regulated rent. The back rent due was reduced to $3,500.

Dara Realty Assocs., LLC v. Schachter: NYLJ, 10/7/02, p. 29, col. 3 (App. T.2 Dept.; Aronin, JP, Golia, Rios, JJ)