Partial Pointing and Waterproofing Work Qualified as MCI

The DRA granted landlord's MCI rent increase application based on pointing and waterproofing, new intercoms, and associated engineering fees. Tenants appealed and lost. Tenants argued that the pointing and waterproofing didn't benefit all tenants of the building since only portions of the facade were replaced. They also claimed that the work wasn't essential for the operation, preservation, and maintenance of the structure. But it's the DHCR's established position that comprehensive pointing and waterproofing as needed on exposed sides of a building constitutes an MCI for which a rent increase can be granted. The work must be performed in a way that remains free from water seepage for a reasonable period of time. Landlord's contractor signed a statement and submitted a diagram showing that it had examined all exposed sides of the building before doing the pointing/waterproofing work. It didn't matter, as tenant claimed, if landlord did the work only to "beautify" the building, since all tenants benefitted and it improved the structural soundness of the property.

Lewis/Fogel: DHCR Adm. Rev. Docket No. EP410050RT (11/22/19) [2-pg. doc.]