No Rent Increase for Water-Damaged Apartments

LVT Number: #23116

Landlord applied for MCI rent hikes based on pointing, waterproofing, and masonry work. Some tenants objected, claiming that water continued to leak into their apartments. An architect hired by the Tenant Association also stated that landlord did less work than claimed and that the leaks weren't caused by plumbing problems. After inspection, the DRA ruled for landlord, but permanently exempted five apartments from any rent increase. Landlord appealed and lost. Landlord then filed a court appeal, claiming that the DHCR's decision was arbitrary and unreasonable.

Landlord applied for MCI rent hikes based on pointing, waterproofing, and masonry work. Some tenants objected, claiming that water continued to leak into their apartments. An architect hired by the Tenant Association also stated that landlord did less work than claimed and that the leaks weren't caused by plumbing problems. After inspection, the DRA ruled for landlord, but permanently exempted five apartments from any rent increase. Landlord appealed and lost. Landlord then filed a court appeal, claiming that the DHCR's decision was arbitrary and unreasonable. The court and appeals court ruled against landlord, finding the DHCR's penalty reasonable and appropriate.

Terrace Court, LLC v. DHCR: NYLJ, 12/30/10, p. 28, col. 1 (App. Div. 1 Dept.; Mazzarelli, JP, Friedman [dissenting], Nardelli [dissenting], Renwick, Roman, JJ)