MCI Rent Hike for Defective Facade Work Revoked

(Decision submitted by David Hershey-Webb of the Manhattan law firm of Himmelstein McConnell Gribben, Donoghue & Joseph, attorneys for the tenants.) Landlord applied for MCI rent hikes based on a number of improvements. The DHCR ruled for landlord and increased tenants' rents by $32.92 per room per month based on the installations of intercoms, a service entrance door, a boiler/burner, elevator upgrades, a water tank, and exterior restoration, along with scaffolding and consultant fees. The agency exempted 10 apartments from rent increases until repairs were completed based on water damage related to the exterior work. Tenants appealed, claiming that the DHCR's decision was arbitrary and unreasonable. They argued that there should be no increase for the defective facade work. The court agreed and sent the case back to the DHCR for reconsideration. The DHCR then ruled for tenants and denied any MCI rent hike for the exterior restoration work. The DHCR inspections conducted in 2005 found water damage in the walls of 10 out of 72 apartments, which indicated that the work completed in 1999 wasn't sufficient to prevent water seepage in the building. Additional inspections done in 2011 showed water damage to exterior walls in five apartments and severe water damage and missing plaster in one apartment. The moisture meter read "100 % wet" in two apartments. So there was still evidence of water damage in a majority of the 10 apartments originally exempted 12 years after the MCI was completed. This showed that the MCI had been done in an unworkmanlike manner. The total MCI rent hike was reduced to $14.66 per room per month.

20 Fifth Avenue Tenants Association: DHCR Adm. Rev. Docket No. ZA430011RP (6/30/11) [6-pg. doc.]