Landlord Obtained Waiver of Reasonable Cost Schedule Limit for Elevator Modernization

Landlord applied to the DHCR for MCI rent hikes based on elevator modernization. The DRA ruled for landlord and increased tenants' rents. Tenants appealed and lost. Tenants claimed that landlord failed to submit sufficient proof that the useful life of the elevators had expired or to request a waiver of the DHCR's Reasonable Cost Schedule as required by the HSTPA. Tenants also claimed that landlord failed to: (1) clear hazardous and immediately hazardous building violations; (2) maintain services at the building; and (3) provide the DHCR with an accurate room count.

But, first, landlord had properly requested and sufficiently proved its eligibility for a waiver of the useful life requirement for the elevator work. A prior MCI increase for elevator modernization work had been granted in 1998 for work completed on March 1, 1994. The new work commenced in February 2016, less than 25 years after the prior work. Landlord's engineer submitted a statement that the existing elevators were in poor condition, beyond repair, and required immediate replacement due to potential hazards of mis-leveling, recurring service outages, and catastrophic permanent failure.

Second, landlord had submitted and obtained from the DHCR a waiver of the MCI Reasonable Cost Schedule based on work that exceeded what was covered in the Schedule.

Third, there was no proof that landlord failed to clear hazardous and immediately hazardous violations in accordance with the HSTPA.

Fourth, DOB had signed off on the elevator work, showing that they were in proper working order following completion of the MCI. If there were other building or apartment service issues, tenants could file service reduction complaints with the DHCR.

Finally, only one tenant had complained to the DRA of an incorrect room count and that claim had been settled.

Riverton Tenants' Association: DHCR Adm. Rev. Docket No. JW410030RT (2/12/24)[4-pg. document]