MCI Increase for Facade Work Denied Based on Prior Increase

Landlord applied for MCI rent hikes based on pointing and steam cleaning. The DRA ruled against landlord, who appealed and lost. The DRA found that landlord had previously obtained an MCI increase in 2008 for pointing and waterproofing completed in 2007, and that the useful life of the work hadn't yet expired. Landlord argued that his current MCI application was for the front of the building facade only, while the prior application covered pointing and waterproofing of the rear, left, and right sides of the building. But the DHCR granted the prior MCI application based on the pointing and waterproofing being comprehensive in nature, and this contemplates that all sides of a building will be structurally sound and watertight for at least the 15-year useful life requirement. Landlord didn't seek a waiver of the useful life requirement before applying for the front facade work. 

Panos: DHCR Adm. Rev. Docket No. HW230029RO (9/6/22)[2-pg. document]