Balcony Renovations Qualify as MCI

Landlord applied for MCI rent hikes based on installation of a new roof, pointing brick masonry and brick removal, the restoration of balconies, and the installation of balcony dividers. The DRA ruled for landlord in part but found that the balcony restoration and work related to it didn’t qualify for MCI rent hikes because landlord withdrew the claim for pointing and most of the work related to it. The DRA also found that the installation of balcony dividers wasn’t an MCI. Landlord appealed, claiming that the complete and extensive balcony restoration qualified as an MCI and that restoration of deteriorating slabs, with the concrete removed to bare metal where necessary, along with new concrete on the balconies, qualified as an MCI.

The DHCR ruled for landlord. The balcony restoration work wasn’t related to the withdrawn pointing work. It is also DHCR’s established position that the work on balconies performed by landlord qualified as an MCI. The fact that not all apartments had balconies didn’t matter. Balcony work maintains the building in a watertight condition and protects the structural integrity of the building. [Download PDF of decision here.]

Samson Management LLC: DHCR Adm. Rev. Docket No. YF110040RO (6/24/16) [4-pg. doc.]