New Sidewalks, Vault Repairs, and Garage Ramp Not Eligible for MCI Rent Hikes

(Decision submitted by David Hershey-Webb, Esq., of the Manhattan law firm of Himmelstein McConnell Gribben & Joseph LLP, attorneys for the tenants.)

Landlord applied for MCI rent hikes based on a number of improvements. The DRA granted an MCI increase for installation of parapets and related work, along with a CCTV system, but denied any increase for new sidewalks with vault repairs and a new garage ramp. The DRA found this work ineligible for an MCI increase. The DRA also deducted a pro-rated amount of the increase for the parapets and related work, finding that a prior MCI rent increase had been issued for pointing and waterproofing work that hadn't exceeded their useful life. Both sides appealed.

The DHCR ruled against landlord, again finding that the new sidewalks, vault repairs, garage ramp, and associated engineering costs weren't eligible MCIs. The DHCR ruled against tenants in part, denying their claim that the DHCR should disallow the entire exterior restoration work based on the fact that pointing, which was only a part of that work, hadn't exceeded its useful life. But the DHCR ruled for tenants in part, finding that the costs of pointing, which was a part of the exterior restoration that hadn't exceeded its useful life, must be disallowed. Landlord hadn't applied for a waiver of the useful life requirement for this item.

CF E 88 LLC & SM E 88 LLC/Lexington Towers Tenants Association: DHCR Adm. Rev. Docket Nos. FQ410016RO, FQ410035RT (9/9/22)[4-pg. document]