Landlord's Useful Life Waiver Application Was Untimely

Landlord applied for MCI rent hikes based on pointing and waterproofing. The DRA ruled against landlord, which had spent $1,780,125 on pointing, waterproofing, and related architectural costs. The DRA found that a prior DHCR order granted increases for pointing and waterproofing and that the work’s useful life hadn’t expired. Landlord appealed and lost. Landlord submitted a request for waiver of the useful life requirement with its MCI application. But, unless the work was done on an emergency basis, such application must be filed and approved before the MCI work is done. Although landlord submitted an architect’s sworn statement that the work was needed to remove potentially dangerous conditions, this didn’t amount to an emergency condition such as falling bricks. 

Envoy Towers Associates/Envoy Towers Stabilized Tenants Group: DHCR Adm. Rev. Docket Nos. BU410030RO, BU410040RT (4/27/16) [3-pg. doc.]