3. 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
upon a showing of reduction in services.
Based on the Rent Code Amendments of 2014, the above provisions of the Regulations are to be
effectuated in the following manner:
A. 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 regardless of the effective date of the rent reduction order, even if such date is prior
to the effective date of the order granting the MCI increase. However, pursuant to the Rent Code
Amendments of 2014, an owner cannnot collect the portion of an MCI rent increase, permanent
or temporary, that is scheduled to become collectible after the issuance date of the DHCR rent
reduction order. It will become collectible, prospectively only, from the effective date of a DHCR
Rent Restoration Order.
This document is being issued for informational purposes only.
The original document which contains signatures of authorization is
on file at DHCR’s Office of Rent Administration.
Issued (2/14)
B. In addition, the collectibility of IAI increases has been changed. If a DHCR rent reduction order is issued
after the collection of an IAI increase has commenced, and the effective date of the order precedes the
collection of the IAI, the IAI increase can no longer be collected. Any increase collected after the effective
date of the rent reduction order will need to be refunded to the tenant and the IAI increase cannot be collected
until the effective date of a DHCR Rent Restoration Order.