DHCR Must Reconsider Whether Rewiring Qualified as MCI

Landlord applied for MCI rent hikes based on rewiring. The DRA ruled against landlord. Landlord appealed and won. Tenants then filed an Article 78 petition in court, claiming that the DHCR’s decision was arbitrary and unreasonable. The court ruled for tenants and sent the case back to the DHCR for reconsideration. The DHCR had approved the increase based on landlord’s documents and an agency inspection. But the DHCR’s inspector merely reported that 42 feeders and risers were installed, as well as new electrical meters and pans. But tenants questioned the quality of the work and whether the rewiring supplied sufficient electricity. The inspection reports therefore didn’t address the adequacy of the rewiring service to tenants’ apartments.

Howard v. DHCR: NYLJ, 2/17/10, p. 26, col. 3 (Sup. Ct. NY; Sherwood, J)