One Apartment Exempt from MCI Rent Hike Due to Leak

Landlord applied for MCI rent hikes based on the installation of a new roof, pointing, and waterproofing. The DRA ruled for landlord except that it exempted one apartment from the rent increase based on an inspection that showed weather penetration (leak stains) on the walls and ceilings of the apartment. Landlord appealed, claiming that any exemption should have been temporary. The DHCR ruled against landlord, who then filed an Article 78 court appeal. The case was sent back to the DHCR for reconsideration. The court ordered the DHCR to give landlord 120 days to make any needed repairs and then reinspect. If there was still leak damage, the DHCR’s order should be affirmed. While landlord later claimed that repairs were completed, the DHCR inspection showed that water blisters and leak stains were seen on a bedroom wall over a window and on the adjoining ceiling. So the DHCR upheld the exemption for tenant’s apartment since leak damage remained after MCI work done in 2006.

Delta Management LLC: DHCR Adm. Rev. Docket No. EM210002RP (7/20/16) [2-pg. doc.]