Pointing and Waterproofing Were Done Within Useful Life of Prior MCI Increase

(Decision submitted by Ronald S. Languedoc of the Manhattan law firm of Himmelstein McConnell Gribben & Joseph LLP, attorneys for the tenants.)

Landlord applied for MCI rent hikes based on pointing and waterproofing of the building facade, related engineering fees, and a sidewalk bridge. The DRA ruled for landlord.

Tenants appealed and argued that previous work for pointing and waterproofing at the building for which landlord obtained an MCI increase hadn't exhausted its useful life, and that landlord didn't seek a useful life waiver from the DHCR before starting the new work.

The DHCR ruled for tenants and revoked the MCI rent increase. Landlord had received a prior MCI increase order on July 29, 2004, for work completed in 2001. Since the useful life for pointing was 15 years, and the new work commenced in October 2013, the useful life of the prior work hadn't expired. Landlord filed an emergency useful life waiver request with its new MCI application. Landlord's project engineer stated that the work was needed to address an active water leak and to stop potentially dangerous conditions that were "rapidly developing on the building's exterior." But landlord could have made a waiver request before starting the work since the bid proposal documents and the contract for the work were prepared in July and October 2012. Correspondence from the project engineer also indicated that the facade improvements were planned in part for Local Law 11 repairs. So, the work didn't qualify for an emergency waiver. 

160 East 88th Street Tenants' Association: DHCR Adm. Rev. Docket No. FN430021RT (9/15/22)[3-pg. document]