DHCR Sets Rent Where No Initial MBR on File

Rent-controlled tenant complained of a rent overcharge. She paid $476 per month. Landlord claimed that this was the correct MCR effective Jan. 1, 2008, and that the MCR should be increased to $512 effective Jan. 1, 2009. The DRA ruled for tenant and found that the 2008 MCR was $319, based on calculations that noted there was no initial MBR filing. Landlord appealed and won. Although an initial MBR should have been computed for eligibility to collect MBR rent increases, the DHCR had granted MBR increases to landlord for 17 years since the 1994-1995 cycle. There had been no challenge to the lack of an initial MBR in the 39 years since the MBR system was established. The failure to challenge the initial MBR rent barred raising that issue at this point. Rent control regulations permit the DHCR to set a rent where the facts are in dispute, as in this case.

146 Fifth Avenue LLC: DHCR Adm. Rev. Docket No. YA420008RP (1/11/12) [4-pg. doc.]