DHCR Denies Landlord's Reasonable Cost Waiver Request for Water Tank Installation

Landlord applied to the DHCR for MCI rent hikes based on replacement of a water tank at the building. The DRA ruled against landlord, who appealed and lost. Landlord had requested a waiver of the DHCR's reasonable cost requirements for the water tank installation because water tanks weren't listed in the DHCR's Reasonable Cost Schedule. But landlord didn't comply with the requirements for the waiver. These requirements included submitting sufficient documentation justifying that the claimed costs were reasonable. Landlord also hadn't responded to the DRA's Aug. 8, 2019, notice to resolve outstanding hazardous and immediately hazardous HPD violations. As of June 18, 2021, the date of the DRA's order denying the MCI application, there were 33 Class B and 6 Class C violations at one building and 25 Class B and 7 Class C violations at the other building. Landlord also argued that the DRA improperly applied Rent Stabilization Law amendments enacted on June 14, 2019, under the HSTPA to its then pending MCI application. But courts have repeatedly upheld the DHCR's application of Part K to pending MCI proceedings. 

Canada & Mexico Leasing LP: DHCR Adm. Rev. Docket No. JS110026RO (10/10/24)[7-pg. document]