Amount of MCI Rent Hike Based on Total Room Count

Landlord applied for MCI rent hikes based on replacement of fire escapes. Landlord's application stated that the building's apartments contained a total of 401 rooms and that the cost of the improvement was $44,000. Landlord asked the DRA to divide the cost of the MCI only among tenants occupying 72 of the 401 rooms, because the fire escapes serviced only four lines of apartments. Landlord calculated that this would result in a monthly rent increase of $7.28 to each of the affected tenants. The DRA ruled for landlord in part. The DRA granted a rent increase but divided the cost by the 401 rooms. This resulted in a rent increase of $1.31 per month for the affected tenants only. Landlord appealed and lost. The DHCR said the DRA correctly applied ETPA Section 2502.4(a)(6) by calculating the monthly rent increase per room for the affected tenants by dividing the total MCI cost by the total number of rooms in all the apartments.

Shatles/Samson Management, LLC: DHCR Adm. Rev. Docket Nos. UE710019RT &UE710047RO (1/18/07) [3-pg. doc.]