DHCR Grants Waiver of Reasonable Cost Schedule for Landmark Building Windows

Landlord applied to the DHCR for MCI rent hikes based on installation of lot line and hallway windows in a landmark building. The DRA ruled for landlord; tenants appealed and lost.

Tenants argued that the DRA erred in granting landlord a waiver of the Reasonable Cost Schedule, and that landlord failed to remedy outstanding HPD Class B and Class C violations before granting the MCI rent increases. The DHCR ruled against tenants. As to the violations, the DHCR found that landlord addressed the outstanding violations prior to issuance of the DRA's order on Aug. 7, 2023.

The DHCR also ruled that the Reasonable Cost Schedule waiver was properly requested by landlord and granted by the DRA. For landmark buildings, a landlord may apply for, and the DHCR may grant, a Reasonable Cost Schedule waiver where any eligible MCI work and its costs were the result of any law, regulation, rule, or requirements under which the premises has been designated a landmark building. The Reasonable Cost Schedule also lists the reasonable price per unit cost for windows of landmark buildings as "per landmark requirements."

Also, per NYC Landmarks Preservation Commission  (LPC) regulations, there were standards and regulations to which landlords must adhere. Here, the window installation costs were actual, reasonable, and verifiable, and the landlord submitted to the DHCR sufficient documentation showing full payment, reasoning for increased costs, and compliance with LPS regulations upon completion of the installation. Landlord's Reasonable Cost Schedule waiver stated that the lot line and hallway windows installed were wired glass, fire-rated, unique custom fabricated windows requiring specially crafted features that required approval by the DOB for life safety reasons. LPC also approved the work for aesthetic consistency with the building's historical features. The custom features of these windows also were very expensive and priced within industry standards. Compliance with LPC requirements also was confirmed by that agency.

Various Tenants of the 83-09 35th Avenue Tenants' Association: DHCR Adm. Rev. Docket No. LU130008RT (4/24/24)[4-pg. document]