Landlord Cleared Building Violations Before MCI Increase Was Granted

Landlord applied to the DHCR for MCI rent hikes based on installation of a new roof, parapet walls, entrance door, and intercom. The DRA ruled for landlord. Tenant appealed and lost. Tenant argued that there were hazardous (Class B) and immediately hazardous (Class C) violations in place while the MCI application was pending, and that the application therefore should have been denied.

The DHCR disagreed. While landlord's MCI application was pending, the DRA sent landlord notice of new violation-related requirements that went into effect on June 14, 2019, under amendments to the Rent Stabilization Law enacted under the HSTPA. The DRA asked landlord to affirm that there were no Class C and or Class B violations under the NYC Housing Maintenance Code, Building Code, or Fire Code. Landlord responded with a letter affirming that there were no outstanding Class C violations on record and that three Class B violations currently pending against the building had been addressed. Landlord attached an architect's statement dated Sept. 30, 2019, certifying that the three open Class B violations had been inspected and were found to be corrected. HPD later issued an additional Class B violation on March 27, 2020, and two non-lead-based paint Class C violations on May 12, 2020. Landlord submitted an additional letter and architect's statement to the DHCR dated Nov. 20, 2020, affirming that these new HPD violations also had been corrected. The DRA granted landlord's application on Jan. 27, 2021.

The DHCR found that landlord properly addressed the outstanding HPD violations as required by the HSTPA at the time the MCI order was issued. While tenant pointed to a DOB-issued stop work order at the building, that order had been rescinded in 2018, before landlord's MCI application was filed. 

Karsten: DHCR Adm. Rev. Docket No. JP230013RT (3/14/23)[4-pg. document]