No Facade Work Increase for 25 of Building's 400 Apartments

Landlord applied for MCI rent hikes based on building facade work. The DRA ruled for landlord. But the DRA permitted the rent hikes for only 375 of the building's 400 tenants. For the 25 apartments where the DRA's inspector found moisture-related damage, the DRA denied any rent increase. Landlord and tenants both appealed. Landlord claimed that any exemption from the rent increase for the 25 tenants should be temporary, not permanent. Tenants claimed that the damage in the 25 apartments showed that the work was defective and incomplete. Therefore, no tenants should have to pay the rent increase. The DHCR ruled against both landlord and tenants. For the 25 apartments in question, there was proof of deficient facade restoration at the time of landlord's application immediately following the work. And the defects, including water seepage, still remained three years later, at the time of the DHCR's inspection. So permanent exemptions were warranted. On the other hand, only 25 out of the building's 400 apartments showed damage after the work was completed. This didn't prove that the entire facade improvement was performed poorly. The rent increases for 375 tenants remained in place.

444 East 82nd Street: DHCR Adm. Rev. Docket Nos. UA410049RT, UD410012RO (10/8/08) [4-pg. doc.]