Landlord Properly Filed Requests to Waive Useful Life Limitations for Elevator MCI

Landlord applied for MCI rent hikes based on elevator modernization. The DRA ruled for landlord and increased tenants' rents. The Tenants' Association appealed and lost. Tenants claimed that landlord failed to submit sufficient proof that the useful life of the existing elevators had expired, and failed to request a waiver of the DHCR's Reasonable Cost Schedule as required by HSTPA's amendments to the Rent Stabilization Law. They also claimed that landlord failed to clear hazardous and immediately hazardous building violations and didn't maintain services at the building.

The DHCR pointed out that landlord had in fact requested a useful life waiver. The elevator work commenced in February 2016 although the useful life of a prior elevator modernization MCI rent increase was set to expire in 2018. Landlord submitted an engineer's statement to the DHCR in 2018 indicating that the elevators installed in 1993 were in poor condition, beyond repair, and required immediate replacement due to potential hazards of mis-leveling, recurring service outages, and catastrophic permanent failure. This report properly supported the DHCR's granting of a useful life waiver. Landlord also did properly request a Reasonable Cost Schedule waiver. The DHCR also found no merit to tenants' claim that landlord failed to clear violations. And DOB had signed off on the elevators and on electrical work, supporting a finding that the elevators were in proper working order following the work. 

Riverton Tenants' Association: DHCR Adm. Rev. Docket No. JW410034RT (1/24/24)[4-pg. document]