No MCI Increase Granted Where Prior Rent Reduction Order Was Only Partially Restored
LVT Number: #33664
Landlord applied for MCI rent hikes based on installation of elevator upgrading, tv/security system, intercom, compactor, and roof door. The DRA ruled against landlord because a building-wide rent reduction order was in effect at the building prior to landlord's filing of its MCI application and at the time of the DRA's order.
Landlord appealed and lost. The DRA properly applied DHCR Policy Statement 90-8. The rent reduction order was issued before landlord filed its MCI application. Two partial rent restoration orders were issued before landlord filed its MCI application, but landlord hadn't applied for or obtained a further rent restoration order based on the two remaining service items. So the building-wide rent reduction remained in effect and still created a bar to obtaining an MCI rent increase at the building. It didn't matter if the two items in question had actually been corrected. Landlord must obtain a full DHCR rent restoration order to remove the bar to MCI rent increases. Landlord also argued that the DHCR had given no notice of the outstanding rent reduction, but landlord was responsible for knowing if there was an outstanding rent reduction order.
ESCO Associates LLC: DHCR Adm. Rev. Docket No. KV110018RO (1/7/25)[6-pg. document]
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