Four Apartments with Leaks Permanently Exempted from MCI Rent Hikes

LVT Number: #31285

In 2013, the DHCR's Rent Administrator granted landlord's MCI rent increase application, based on exterior restoration, terrace and roof replacements, and consultant fees. Tenants appealed, and in November 2019, the DHCR ruled that four apartments were permanently exempt from the MCI rent increase. The DHCR's inspector had found in 2011 that these apartments showed signs of current or past leaks, including cracked and crumbling plaster, water blisters, water stains, or leaks. Landlord claimed that it made repairs in response to the DRA's 2012 request to resolve the defects.

In 2013, the DHCR's Rent Administrator granted landlord's MCI rent increase application, based on exterior restoration, terrace and roof replacements, and consultant fees. Tenants appealed, and in November 2019, the DHCR ruled that four apartments were permanently exempt from the MCI rent increase. The DHCR's inspector had found in 2011 that these apartments showed signs of current or past leaks, including cracked and crumbling plaster, water blisters, water stains, or leaks. Landlord claimed that it made repairs in response to the DRA's 2012 request to resolve the defects. Landlord then filed an Article 78 court appeal of the DHCR's decision.

The court ruled against landlord. It was well-settled law that the DHCR could permanently exempt particular apartments from the obligation to pay additional rent when circumstances warranted such decision. While landlord claimed that it completed repairs as requested by the DHCR, there was no proof that it did so or notified the DHCR that it did so while the case was pending before the DRA. 

80 Cranberry St. LLC v. DHCR: Index No. 500440/2020, 2021 NY Slip Op 30433(U)(Sup. Ct. NY; 2/16/21; Baily-Schiffman, J)