MBR Increase Denied Based on Failure to Certify Violation Correction

(Decision submitted by attorney David Hershey-Webb of the Manhattan law firm of Himmelstein, McConnell, Gribben, Donoghue & Joseph LLP, who represented the tenants.)

Landlord filed a violation certification (VC) in order to obtain 2020-21 maximum base rent (MBR) increases for two rent-controlled tenants. With its VC, landlord submitted work permits and contractor affidavits claiming that work was commencing to replace all the building's gas pipes, which would resolve the one rent-impairing violation for a defective gas line. Landlord requested a waiver of this hazardous item because DOB had already issued a permit to replace the gas lines. The DRA found that inspection by HPD showed that the gas line condition still existed in August 2019 and therefore hadn't been removed within 30 days of June 28, 2019, as claimed in the VC. The DRA denied landlord's 2020-21 MBR application because landlord failed to meet the VC criteria.

Landlord challenged the DRA's order, based on its waiver request to the DRA. The DRA ruled against landlord, who appealed and lost. Under rent control regulations, landlord was required to correct all rent-impairing violations and at least 80 percent of all other violations. Landlord's waiver request wasn't supported by the required documentation listed in the MBR Program Instructions. The fact that landlord was waiting for completion of the work to replace gas lines while the DRA's review period was pending didn't warrant a waiver. 

Hildes 95th, LLC: DHCR Adm. Rev. Docket No. IX420036RO (7/8/21)[3-pg. document]