Backflow Prevention Devices Qualify as MCI

Landlord applied for MCI rent hikes based on the installation of a new intercom, backflow preventers, and related engineering consulting fees. The DRA ruled for landlord. Tenant appealed and lost. Tenant claimed that the new intercom installation was ordinary repair and maintenance because it simply replaced a worn-out system. But the Rent Stabilization Code (RSC) permits an MCI increase for replacement of an intercom system whose useful life of 15 years had expired. Tenant also claimed that the backflow preventer and related engineer fees didn’t qualify as MCIs. But the RSC permits MCI increases for work that's necessary in order to comply with specific requirements of law. Landlord was required to install backflow devices to comply with New York State and City codes and hired an engineer to plan where to put them, to file all required applications, and to inspect upon completion.

Bohne: DHCR Adm. Rev. Docket No. CT410021RT (7/8/16) [2-pg. doc.]