Landlord Cleared 'C' Violations to Get MCI Rent Hikes

Landlord applied for MCI rent hikes based on installation of parapet, window lintels, brick, roof entrance doors, mortar roof and hallway window replacements, repointing, facade work, and sidewalk bridge rental during the project.

The DRA ruled for landlord. Tenants appealed and lost. Tenants claimed that there were 28 open violations, including five Class "C" immediately hazardous violations on record at the building. They also claimed that there was an identity of interest between landlord and its contractor. They also argued that the roof replacement was non-MCI maintenance work and that the sidewalk bridge installation wasn't an MCI. The DHCR noted that 2014 Rent Stabilization amendments changed the way the DHCR processed applications relative to "C" violations. Before Jan. 8, 2014, DHCR policy required tenants to raise the issue of immediately hazardous violations while the MCI proceeding was pending before the DRA. After the RSC was amended in 2014, the DHCR initiated its own search of HPD's database to determine if there were any "C" violations in a building. If there were, the application was rejected with permission to renew once the violations were corrected.

In this case, landlord filed the MCI application on Feb 24, 2014. On March 24, 2014, the DRA sent landlord notice of a "C" violation with the returned MCI application. On May 22, 2014, landlord refiled a timely MCI application with an architect's affidavit stating that all "C" violations on record at the building had been corrected and were no longer on record. Therefore, the DRA properly granted landlord's MCI application.

As to the contractor, there was no proof that any fees were paid to anyone with an ownership interest in the building. And replacement of the black roofing cement with mortar roof cement, as well as the sidewalk bridge installation, qualified as other necessary work performed in connection with and directly related to the MCI-qualifying pointing and waterproofing.

Various Tenants of 2800 University Avenue: DHCR Adm. Rev. Docket No. DV610030RT (7/30/20) [3-pg. doc.]