Rescinded DOB Stop-Work Order Didn't Bar MCI Increase

LVT Number: #24633

Landlord applied for MCI rent hikes based on the installation of a new roof. The DRA ruled for landlord, and approved a cost of $35,200 for roof replacement with metal flashing. Tenants appealed and lost. Among other things, tenants claimed that the roof work was done due to a fire, that the cost of the work was paid for by landlord's insurance proceeds, and that the work was done without a DOB permit. It didn't matter why the work was done, and landlord's insurance proceeds were deducted from the claimed MCI costs.

Landlord applied for MCI rent hikes based on the installation of a new roof. The DRA ruled for landlord, and approved a cost of $35,200 for roof replacement with metal flashing. Tenants appealed and lost. Among other things, tenants claimed that the roof work was done due to a fire, that the cost of the work was paid for by landlord's insurance proceeds, and that the work was done without a DOB permit. It didn't matter why the work was done, and landlord's insurance proceeds were deducted from the claimed MCI costs. And while DOB had issued a violation to landlord for doing this work without a permit and had issued a stop-work order, DOB later issued a stop-work rescind order. Landlord also paid DOB $3,600 in fines for the violation. No further penalty was warranted.

350 Audubon Avenue: DHCR Adm. Rev. Docket No. VH410037RT (12/5/12) [3-pg. doc.]

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