New Water Main Doesn't Qualify as MCI

The DRA denied landlord’s request for MCI rent hikes based on the installation of a new water main. Landlord appealed and lost. Landlord pointed out that a main plumbing sprinkler feed line that served the building, starting at the city water main in the street outside the building and traveling underground into the building, was at the end of its useful life and needed to be replaced. The landlord engaged a licensed contractor to replace the entire pipe and had obtained all permits. The street was excavated to expose the entire pipe, the work wasn’t done for emergency purposes or to correct violations. The DHCR ruled against landlord. The DHCR has consistently ruled that the installation of a main sprinkler service line and/or water main service line doesn't qualify as an MCI unless done in conjunction with a complete qualifying building-wide plumbing installation. In order to qualify as an MCI, a plumbing/re-piping installation must include the installation of new hot and/or cold water risers, returns, and branches to the fixtures in every apartment, including shower bodies, and/or new hot and/or new cold water overhead mains, with all the necessary valves in the basement.

Wallack Management Company Inc.: DHCR Adm. Rev. Docket No. CX410028RO (6/24/18) [2-pg. doc.]