Restoration of J-51 Offset of MCI Rent Hike Effective After Order Issued
LVT Number: #22267
The DHCR granted landlord an MCI rent hike in 1995. In 1999, the MCI rent hike was reduced based on a J-51 tax abatement landlord received. This resulted in a 10 cent offset per room per month for rent-controlled tenants. When the J-51 benefits expired, landlord applied for rent restoration of the full MCI rent hike. The DRA ruled for landlord, and made the rent restoration effective as of July 1, 2008.
Landlord appealed and lost. Landlord claimed that the effective date of the rent restoration should be Dec. 31, 2007. But Rent and Eviction Regulations Section 2202.2 states that no order increasing a rent-controlled tenant's maximum rent can be effective prior to the date the order is issued. And it was the DHCR's long-standing practice that the reinstatement of rent at the end of a J-51 tax abatement period goes into effect on July 1, at the beginning of the subsequent NYC Department of Finance fiscal year. Since the DRA's order was issued on March 7, 2008, the proper effective rent restoration date for the rent-controlled tenants was July 1, 2008.
Samson Management, LLC: DHCR Adm. Rev. Docket No. WD130051RO (9/18/09) [2-pg. doc.]