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 ------------------------------------------------------------