Application of High Rent Deregulation to Tenant Being Charged Retroactive MCI Rent Hike

LVT Number: 17707

The legal rent of a vacant rent-stabilized apartment would be $1,950 if rented today. Landlord's MCI application was pending and, if granted, would increase the legal rent of this apartment to $2,050. The retroactive portion of the MCI rent hike would be in effect today. Landlord asked the DHCR if the apartment would be subject to high rent deregulation if rented today. In an opinion letter, the DHCR said no. Since no order granting the MCI rent hike had been granted, the legal rent today was only $1,950 and was not deregulated.

The legal rent of a vacant rent-stabilized apartment would be $1,950 if rented today. Landlord's MCI application was pending and, if granted, would increase the legal rent of this apartment to $2,050. The retroactive portion of the MCI rent hike would be in effect today. Landlord asked the DHCR if the apartment would be subject to high rent deregulation if rented today. In an opinion letter, the DHCR said no. Since no order granting the MCI rent hike had been granted, the legal rent today was only $1,950 and was not deregulated. However, if landlord kept the apartment vacant and rented it after the DHCR granted the MCI rent hike, the legal rent would be $2,050 and the apartment would be deregulated.

DHCR Opin. Ltr. by Gregory C. Fewer (8/19/04) [4-pg. doc.]

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