DHCR Reopens MCI Application for Consideration of BPD Under Reasonable Cost Schedule

Landlord applied for MCI rent hikes based on installation of a Reduced Pressure Zone (RPZ) backflow prevention device (BPD). The DRA ruled against landlord because it failed to submit a waiver request in connection with the DHCR's Reasonable Schedule Cost Schedule. A landlord must apply for a waiver of the Reasonable Cost Schedule in any circumstance where an MCI item doesn't appear in the schedule. Backflow prevention devices weren't listed in the first few Reasonable Cost Schedules but were added in a supplement issued several months after the DRA denied landlord's application. In light of RSC Section 2522.7 stating that the DHCR "shall take into consideration all factors bearing upon the equities involved," the DHCR sent the case back to the DRA for further consideration. Landlord wouldn't be given another chance to seek waiver of the Reasonable Cost Schedule, but the cost limit now listed by the DHCR would be applied to landlord's MCI application.

Micbry Associates LLC: DHCR Adm. Rev. Docket No. JV610041RO (5/1/24)[4-pg. document]