Request for Useful-Life Waiver Not Required

Landlord applied for MCI rent hikes based on installation of a new roof. The Westchester County DRA ruled against landlord because landlord didn't file a prior request for waiver of the useful-life requirement. Landlord had replaced a single-ply roof after 15 years. The DHCR's useful-life schedule allowed an MCI increase for replacement after 20 years unless the useful-life requirement was first waived. Landlord appealed. Landlord had requested a waiver of the useful-life requirement after starting the work and after a licensed engineer confirmed that the old roof was in hazardous condition. Landlord argued that there was no requirement to file a prior request for a useful-life waiver when it filed its MCI application in 2002. The DHCR ruled for landlord. In Oct. 2005, the DHCR issued amendments to the Tenant Protection Regulations outside New York City concerning the useful-life schedule for MCIs and requirements for waivers. It would be unfair to apply these regulations to landlord's MCI application. When landlord filed its MCI application, there was no specific regulation outside New York City setting forth the useful life of a single-ply roof or a requirement for applying for a waiver of any useful-life provision. Landlord spent over $400,000 for the new roof and was entitled to an MCI rent hike.

Harbor One Company, LLC: DHCR Adm. Rev. Docket No. SD930010RO (5/24/07) [4-pg. doc.]