Fact
Sheet #35 - Collectibility of Major Capital Improvement (MCI) and/or Owner
Individual (OI)
Rent Increases
Where the Rent is Reduced Because of Diminution of Services
Section 2523.4 of the Rent Stabilization Code (RSC) authorizes tenants to
apply to the DHCR for a reduction of the legal regulated rent to the level
in effect prior to the most recent guidelines adjustment, and provides that
such order reducing the rent bars the owner from applying for or collecting
any further rent increases until the services are restored. The issuance
of a rent restoration order results in the prospective elimination of this
sanction.
Section 2503.4 of the Tenant Protection Regulations also authorizes tenants
to apply to the Division for a reduction of the legal regulated rent to the
level in effect prior to the most recent adjustment.
Similarly,
Sections 2202.16 and 2102.4 of the City and State Rent and Eviction Regulations,
respectively, provide authority for the Administrator to order
decreases in rent controlled maximum rents, by a specific dollar amount,
upon a showing of reduction in services.
Where an MCI rent increase application was granted and collection of the
increase commenced prior to the issuance of a rent reduction order, the owner
will be permitted to continue to collect the MCI increase even if the effective
date of the rent reduction order is prior to the effective date of the order
granting the MCI increase.
Similarly, the effective date of a rent reduction order will not affect
the continued collection of an OI increase, if collection of the increase
began prior to the issuance of the order.
However, no other rent increases may be collected after the effective date
of the rent reduction order, until a rent restoration order is issued.
For
more information or assistance, call the DHCR Rent InfoLine (718-739-6400)
or visit your Borough or County Rent Office.
DHCR Version
1/25/05
RGB page updated 8/11/08
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