Effective Date of MCI Increase Was Properly Delayed

Landlord applied to the DHCR for MCI rent increases based on rewiring, new front and back doors, a TV/security system, and key fob/card access control. The DRA ruled for landlord, who appealed the effective date of the MCI increase.

The DHCR ruled against landlord. The effective date of the MCI increase was March 1, 2018, because the DHCR had separately approved modification of building services by separate order on Feb. 7, 2018. Landlord argued that the service modification order was only for the replacement of metal keys with the key fob/card access control, and that the DHCR had delayed action on that application for 19 months. But landlord had filed its MCI application in July 2016 and was advised by the DRA in March 2017 that it must file the service modification application to obtain approval of the key fob/card access control installation before obtaining any MCI increase for that work. It's long-standing DHCR policy to set the effective date of an MCI increase after an owner's service modification application is granted when the permission relates to the qualifying MCI. An MCI application is considered complete only after all approvals have been submitted, including a service modification order that may be required. There was no error here by the DRA.

Perikles Realty LLC: DHCR Adm. Rev. Docket No. GP230021RO (10/23/20) [2-pg. doc.]