MCI Rent Increase Order Not Affected by DOB Stop-Work Order Issued Later

LVT Number: #32384

Landlord applied to the DHCR for MCI rent hikes based on the installation of building-wide rewiring. The DRA ruled for landlord, and tenants appealed. Tenants claimed that some of the room counts listed in landlord's MCI application were inaccurate, and that a partial Stop-Work Order had been issued against the building in July 2018. The DHCR ruled for tenants in part. The DHCR agreed with tenants' claims about the room counts and amended the total room count.

Landlord applied to the DHCR for MCI rent hikes based on the installation of building-wide rewiring. The DRA ruled for landlord, and tenants appealed. Tenants claimed that some of the room counts listed in landlord's MCI application were inaccurate, and that a partial Stop-Work Order had been issued against the building in July 2018. The DHCR ruled for tenants in part. The DHCR agreed with tenants' claims about the room counts and amended the total room count. As for the Stop-Work Order, it has been longstanding DHCR policy that an MCI rent increase won't be granted when there's proof on record that a DOB-issued Stop-Work Order was in effect, regardless of whether the order was related to the MCI work. But the Stop-Work Order cited in this case was issued after June 27, 2018, when the DRA granted the MCI rent increase. So the Stop-Work Order had no effect on the MCI increase order.

Freel/Sanchez: DHCR Adm. Rev. Docket No. GT430001RT (12/1/22)[3-pg. document]