Damaged Apartments Permanently Exempt from MCI Increase

March 8, 2012

LVT Number: #23970

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. The DHCR ruled for landlord, but permanently exempted five apartments from any rent increase. Landlord appealed and lost. The court, interim appeals court, and New York's highest court of appeals ruled against landlord, finding the DHCR's penalty rational and appropriate since the five tenants in question didn't receive the benefit of the MCI.

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. The DHCR ruled for landlord, but permanently exempted five apartments from any rent increase. Landlord appealed and lost. The court, interim appeals court, and New York's highest court of appeals ruled against landlord, finding the DHCR's penalty rational and appropriate since the five tenants in question didn't receive the benefit of the MCI.

Terrace Court, LLC v. DHCR: 2012 NY Slip Op 01100, 2012 WL 443947 (NY Ct. App., 2/14/12; Graffeo, J)

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