MBR Hearing Held; No ’98/’99 Factor Yet
by Jenny Laurie

Almost 50 rent-controlled tenants testified in favor of the state Division of Housing and Community Renewal’s proposal for a 3.8% MBR factor at an agency hearing held on June 17.

As Tenant went to press, the DHCR had not yet announced the MBR factor for the 1998/99 cycle. The factor will determine rent increases for approximately 50,000 rent-controlled tenants whose owners have filed for increases beginning last January 1. Under the MBR system, rent-controlled tenants pay a 7.5% increase every year until their Maximum Collectible Rent reaches the ceiling of the Maximum Base Rent.

After two years of lawsuits and wrangling over which of two opposing formulas would be used to determine the MBR factor, the DHCR was unusually late in proposing one this year; normally, the factor is set the fall before the two-year cycle begins. While close to 50 tenants testified in favor of the 3.8% factor (which will mean that thousands of rent-controlled tenants will not have to face full 7.5% increases in their rents over the two years), there were no landlords or owner representatives at the hearings. Several elected officials sent representatives to testify in support of the low MBR factor.