No Labor Cost Adjustment if Landlord Ineligible for MBR Increase

Landlord applied for a labor cost adjustment for rent-controlled tenants' rents for the 1990–91 period. The DRA ruled against landlord since landlord hadn't gotten an MBR Order of Eligibility for that period. Landlord appealed, claiming that later MBR increases were approved. The DHCR ruled against landlord. Under rent control regulations, landlord can't get a labor cost adjustment if landlord wasn't eligible for MBR increases during the same period. The fact that landlord got later MBR increases didn't affect eligibility for a labor cost adjustment for 1990–91.

MGRE Co.: DHCR Adm. Rev. Dckt. No. GK420064RO (7/1/99) [2-pg. doc.]