DHCR Can't Deny MCI Increase to All Tenants Based on Small Number of Water-Damaged Apartments

LVT Number: #24944

Landlord applied for MCI rent hikes based on pointing and waterproofing. The DHCR ruled for landlord in part but vacated a percentage of the total rent increase and ordered a refund to rents collected from all tenants based on water damage found in 10 of the 108 apartments. Landlord appealed, claiming that the DHCR's decision was arbitrary and unreasonable. The court ruled for landlord. The DHCR then appealed and lost. The DHCR initially had ruled that it was proper to exempt from MCI rent hikes only the 10 apartments with water damage.

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20 Fifth Avenue, LLC v. DHCR: 2013 NY Slip Op 05434, 2013 WL 3793503 (App. Div. 1 Dept.; 7/23/13; Tom, PJ, Andrias, Renwick, DeGrasse, JJ)