New York State
Division of Housing and Community Renewal
Office of Rent Administration
Gertz Plaza, 92-31 Union Hall St.
Jamaica, New York 11433
Public Information: (718)739-6400


POLICY STATEMENT (90-8)

FAILURE TO MAINTAIN SERVICES-
PROCESSING MCI APPLICATIONS

This policy statement describes the procedures for processing MCI
applications in accordance with Section 2522.4 paragraph 13 of
New York City Rent Stabilization Code.

As specified in the Code, "The DHCR shall not grant an owner's
application for a rental adjustment...in whole or in part, if it
is determined by the DHCR prior to the granting of approval to
collect such adjustment that the owner is not maintaining all
required services, or that there are current immediately
hazardous violations of any municipal, county, state or federal
law which relate to the maintenance of such services. However, as
determined by the DHCR, such application may be granted upon
condition that such services will be restored within a reasonable
time, and certain tenant-caused violations may be excepted."

Where there is a DHCR order in effect determining a failure to
maintain a building-wide service which resulted in a rent
reduction, when an MCI rent increase is applied for, an order of
denial of the MCI application will be issued.  However, if the
owner has filed for a rent restoration with DHCR, the pending
restoration application will be expedited. The MCI application
will be held until the restoration application has been
determined.  If it is granted, the prospective MCI increase will
be collectible from the effective date of the MCI order and the
retroactive increase will only be collectible for those periods
in which these was no rent reduction order in effect.

Where there is a DHCR order in effect determining a failure to
maintain services in an individual apartment(s), and an MCI rent
increase is approved, the MCI order will be issued for the entire
building granting the rent increase.  However, until a
restoration order is issued for the individual apartment(s), the
owner is barred from collecting the prospective increase and any
retroactive increase is forfeited for the period during which a
rent reduction order was in effect.

Where a Petition for Administrative Review ( PAR) has been filed
by the owner against a building-wide service reduction, the PAR
proceeding will be expedited.  If the service reduction is
overturned by the PAR Unit, then the MCI application will be
processed disregarding the service reduction.  Where the PAR is
decided against the owner, and the service reduction is still in
effect, an order of denial of the MCI application will be issued.

Processing of MCI applications will include consideration of
relevant tenant comments received within the thirty (30) day time
limit.  Those comments which are pertinent to the MCI
installation will be examined by the MCI Section.  Until the
order is issued, there are no time restrictions for reporting
immediately hazardous conditions to the MCI Section.

Where the tenant submits a comment alleging that there are
immediately hazardous conditions in the building, the MCI Section
will inform the owner of all comments submitted.  Upon receipt of
the owner's response, an inspection, if necessary, will be
ordered.  If immediately hazardous conditions are found to exist
the MCI application will be denied.  The owner may reapply when
the condition is remedied.

Where an order of denial is issued due to a DHCR order finding a
building-wide failure to maintain services, the two year statute
of limitations for filing an MCI application will be waived only
if the owner restores services and files for a rent restoration
within sixty (60) days of the service reduction order and refiles
the MCI application within ninety (90) days of the MCI denial
order.


March 16,1990

Elliot G. Sander
Deputy Commissioner

------------------------------------------------------------
DHCR Policy Statements are **promulgated** (i.e., officially
issued) by the New York State Division of Housing and Community
Renewal (DHCR) and represent **official** policy of the agency.

The agency is generally obligated to follow the policy contained
in these and other documents or provide a rational for deviation;
failure to follow the law, policy or practice may form the basis
for an appeal. Electronic versions of the documents on TenantNet
are for informational purposes only and there is no guarantee
they will be accepted by any court (or even DHCR) as true copies
of DHCR policy. The reader is advised to obtain true copies of
these documents from DHCR. Also see DHCR Advisory Opinions,
DHCR Operational Bulletins, the Rent Stabilization Code, the Rent
Stabilization Law and various Rent Control Statutes.

Every attempt has been made to conform to the original Policy
Statements as issued by DHCR; TenantNet makes no
representation the enclosed material is current or will be
applied as written.  The reader is advised that DHCR often fails
to properly apply, interpret or enforce housing laws.  Since
housing laws are complex and often contradictory, it is
recommended the reader obtain competent legal advice from a
tenant attorney or counseling from a tenant association or
community group. (rev. 3/13/96) DHCR documents
are public documents; the electronic version of such documents
have been developed by TenantNet and any added value, enhancements
and/or proprietary features are copyright 1994, 1995 and 1996 by
TenantNet. These documents may be freely distributed provided they
remain intact as herein presented, including this and the top
informational banner referencing TenantNet as the original provider.
------------------------------------------------------------

For more information or assistance. call the DHCR Rent Infoline
at (718) 739-6400, or visit your Borough Rent Office.

Queens Central Office
92-31 Union Hall St. 4th Fl.
Jamaica, NY 11433
(718) 739-6400

Bronx
One Fordham Plaza
Bronx, NY 10458
(718) 563-5678

Brooklyn
250 Schermerhorn St.
3rd Floor
Brooklyn, NY 11201
(718) 780-9246

Lower Manhattan
156 William Street
9th Floor
NY, NY 10038
(212) 240-6011, 6012
South side of 110th St. and below

Upper Manhattan
163 W. 125th St.
5th Floor
NY, NY 10027
(212) 961-8930
North side of 110th St. and above

Staten Island
350 St. Mark's Place
Room 105
Staten island, NY 10301
(718) 816-0277

Nassau County District Rent Office
50 Clinton Street, 6th Floor
Hempstead, NY 11550
(516) 481-9494

Westchester County District Rent Office
55 Church Street, 3rd Floor
White Plains, NY 10601
(914) 948-4434

Rockland County District Rent Office
94-96 North Main St.
Spring Valley, NY 10977
(914) 425-6575

Albany Regional Office
119 Washington Avenue
Albany, NY 12210
(518) 432-0596

Buffalo Regional Office
Ellicot Square Building
295 Main St., Room 438
Buffalo, NY 14203
(716) 856-1382
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