Landlord Gets MCI Rent Hike for Building-Wide Carpet Installation

Landlord applied for MCI rent hikes based on new carpeting installed throughout the building. The DRA ruled for landlord.

Tenants appealed, and the DHCR denied their petition for administrative review (PAR). Tenants then filed an Article 78 court appeal and argued that the DHCR's decision was arbitrary and unreasonable. The court ruled against tenants, who then appealed to a higher court.

The appeals court again ruled against tenants. The DHCR's decision had a rational basis. Tenants didn't claim that landlord's MCI application failed to satisfy any of the criteria set forth in Rent Stabilization Code Section 2522.4(a)(2)(i). And tenants didn't claim that building-wide carpeting couldn't qualify as an MCI until they raised that issue in their reply. Landlord's misstatement of the age of the old carpeting in its application didn't matter in this case. And tenants didn't raise any claim before the DHCR that landlord didn't obtain a waiver of the useful life requirement applied to MCIs. 

Wages v. DHCR: Index Nos. 11780, 101186/16, 2020 NY Slip Op 03851 (App. Div. 1 Dept.; 7/9/20; Acosta, PJ, Manzanet-Daniels, Kapnick, Singh, Gonzalez, JJ)