DHCR Must Reconsider Whether Rewiring Was Sufficient for MCI Rent Hike

(Decision submitted by Jon Lilienthal of the Manhattan law firm of Collins, Dobkin & Miller LLP, attorneys for the tenants.)

Facts: Landlord applied for MCI rent hikes based on electrical rewiring. Thirty-one of the building’s 49 tenants claimed that the work didn’t benefit all tenants. They said that many apartments had been gut-rehabbed and so had previously received electrical upgrades and rent increases based on individual apartment improvements. Tenants also claimed that the new wiring was hazardous and inadequate, and that no rewiring was done within apartments. The DRA ruled against landlord, finding that no feeders were installed to apartments. Landlord appealed, claiming that feeders were installed. The DHCR ruled for landlord since its inspector found that new risers, new electrical meters, and pans for each apartment were installed. Tenants then brought an Article 78 proceeding, claiming that the DHCR’s decision was arbitrary and unreasonable.

Court: Tenants win. To qualify as an MCI, rewiring must accommodate the installation of air conditioner circuits and outlets as well as two double outlets in apartment kitchens. There was no proof that the new wiring did this. In fact, some apartments had only 20 amps of service, indicating that they didn’t have the required capacity for heavy-duty appliances. Since the court couldn’t determine whether the DHCR considered all questions needed before granting the MCI rent hike, the case was sent back to the DHCR for additional fact-finding.

184-186-188 Norfolk Street Tenants Association v. DHCR: Index No. 110686/09 (2/1/10) (Sup. Ct. NY; Sherwood, J) [6-pg. doc.]