No Second MCI Increase for Facade Work Within Useful Life of Prior Work
LVT Number: #31759
The DHCR denied landlord's application for an MCI rent hike relating to pointing, waterproofing, and related facade work. Landlord then filed an Article 78 court appeal, claiming that the DHCR's decision was arbitrary and unreasonable. The court ruled against landlord, who appealed and lost. Landlord began MCI work in 2007, involving pointing, waterproofing, related facade work, and installation of a new intercom system. The DRA ruled in 2012 that, since a prior MCI rent hike had been granted for previous work performed on the building within the 15-year useful life period of the prior work, and since landlord didn't seek a waiver of the useful life requirement before the work commenced, another MCI rent hike wasn't permitted except for the intercom installation. The DHCR's decision was rational, and wasn't arbitrary and capricious.
M.M. & I. Realty Co., LLC v. DHCR: Case No. 2018-05423, 2021 NY Slip Op 06355 (App. Div. 2 Dept.; 11/17/21; Mastro, P, Austin, Duffy, Connolly, JJ)