Pointing and Waterproofing Work Performed Without Useful Life Waiver

Landlord applied for MCI rent hikes based on pointing and waterproofing of the building exterior. The DRA ruled against landlord, finding that the useful life of prior pointing and waterproofing work hadn’t expired. Landlord appealed and lost. Landlord argued that the work done was emergency work to correct conditions dangerous to life, safety, or health. Landlord’s engineer stated in July 2013 that deterioration to the building’s brickwork had led to several leaks on the top two floors and caused pieces of brick to fall from the building. Landlord also claimed that a useful life waiver issued by the DHCR in connection with pointing and waterproofing work done in 2006 should be applied to permit the additional MCI rent hike. But landlord admitted that the recent pointing and waterproofing work was not initially undertaken as an emergency repair but was instead planned to comply with a 2008 Local Law 11/98 Sixth Cycle inspection report listing the building’s status as “Safe with a Repair and Maintenance Program.” The work also didn’t otherwise qualify as an MCI since prior pointing and waterproofing work completed in 2003 and approved by the DHCR as an MCI in 2006 hadn’t outlived its 15-year useful life. Landlord didn’t request a useful life waiver before starting the work and didn’t sufficiently show that the new work was done on an emergency basis.

Ludor Properties LLC: DHCR Adm. Rev. Docket No. BU430028RO (4/15/16) [2-pg. doc.]