MCR Increase Can't Be Added After DHCR Ruling

February 1, 2008

LVT Number: #20205

In 1999, landlord applied for rent increases to rent-controlled apartments based on unique and peculiar circumstances. The DHCR ruled for landlord in 2005 and set new rents using a comparability study. The DHCR gave landlord substantial rent increases, collectible over four years. One tenant later complained of a rent overcharge. Tenant claimed that landlord couldn't increase his rent based on the owner's 2004-05 MBR application because this would violate the phase-in limitation set by the DHCR in the prior order. The DRA ruled for tenant. Landlord appealed and lost.

In 1999, landlord applied for rent increases to rent-controlled apartments based on unique and peculiar circumstances. The DHCR ruled for landlord in 2005 and set new rents using a comparability study. The DHCR gave landlord substantial rent increases, collectible over four years. One tenant later complained of a rent overcharge. Tenant claimed that landlord couldn't increase his rent based on the owner's 2004-05 MBR application because this would violate the phase-in limitation set by the DHCR in the prior order. The DRA ruled for tenant. Landlord appealed and lost. The DRA properly interpreted the prior order to cap any rent increases at the amounts set by the four-year phase-in.

207 Realty Associates, LLC: DHCR Adm. Rev. Docket No. VC420022RO (11/15/07) [3-pg. doc.]

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