Landlord Properly Limited Collection of MCI Rent Hike Under DHCR Collectability Guidelines

The DHCR's Rent Administrator granted landlord's application for MCI rent hikes based on facade restoration with engineering fees. Tenant appealed and lost. Tenant claimed that the rent increase approved by the DRA violated DHCR policy because the increase was for more than 2 percent of tenant's monthly rent at the time the application was filed. But the DHCR found no error. The DHCR's 2 percent limitation policy refers to the collectability of the approved rent increase, not the amount of the increase itself. Landlord's collection of the MCI increase may not exceed 2 percent of tenant's rent in any 12-month period, with the excess spread forward in similar increments. Landlord had complied with this limitation as explained in its notice to tenant of the MCI rent increase.

Malysa: DHCR Adm. Rev. Docket No. JX210001RT (7/21/23)[1-pg. document]