No Increase for Apartments with First Rents

Landlord applied for MCI rent hikes based on a number of improvements. The DRA ruled for landlord, granting rent increases for rent-stabilized tenants. Tenants appealed, claiming that they moved in after December 1981 and were charged free market rents that then became subject to rent stabilization. These rents reflected the costs for building-wide renovations done before they moved in. Tenants argued that they shouldn't be charged MCI increases for the improvements on which their first rents were based. The DHCR ruled for tenants. MCI increases can't be collected for any apartment for which a free market rent was charged under the terms of landlord's SONYMA loan for building renovations.

Various Tenants, 101 Lafayette Ave.: DHCR Adm. Rev. Dckt. No. ART 07397-K (2/8/95) [4-page document]