Total MCI Increases Limited to 6 Percent in One Year

The DRA granted landlord's application for MCI rent hikes based on the installation of video intercoms. Tenant appealed and lost. Tenant argued that this MCI rent increase, together with another MCI increase granted within the same year, would push tenant's total rent increase beyond 6 percent of the rent in effect on the applicable rent roll date. But the fact that a prior MCI increase was granted within the same year isn't grounds for denying another MCI increase. Under the Rent Stabilization Code, landlord can't collect more than a 6 percent increase for MCIs during one year, and must defer collection of some of the increase if it pushes tenant's rent increase over 6 percent. Tenant can file a rent overcharge complaint if landlord actually collects too much of the approved increases at once.

19 Stuyvesant Oval: DHCR Adm. Rev. Docket No. XG410025RT (2/26/14) [1-pg. doc.]