Useful Life of Prior Exterior Restoration MCI Still in Effect

Landlord applied to the DHCR for rent hikes based on pointing and waterproofing, architectural fees, related roof railing, and installation of a sidewalk shed while the work was pending. The DRA ruled against landlord, because the DHCR had previously granted an MCI rent hike in 2012 for exterior restoration work and the 25-year useful life of the prior work hadn't yet expired.

Landlord appealed and lost. Landlord didn't submit a useful life waiver request to the DHCR before filing its recent MCI application. And landlord didn't submit an emergency useful life waiver request with its application. Landlord submitted with its MCI application only a non-emergency useful life waiver application. Landlord therefore failed to apply for a useful life waiver in accordance with the requirements of RSC Section 2522.4. Landlord also argued incorrectly that the prior MCI wasn't for the same work. But the pointing and waterproofing work under to prior MCI application wasn't performed as an independent MCI item but was included as an integral part of the extensive exterior restoration work performed. So the new work didn't have a separate useful life. It was subject to the 25-year useful life of the exterior restoration work that hadn't expired. 

Gerel Corp.: DHCR Adm. Rev. Docket No. JS410014RO (10/13/23)[4-pg. document]