Canopy Installations Don't Qualify as MCI

Landlord applied for MCI rent hikes for courtyard concrete, fencing, landscaping, irrigation, new canopies, and vestibule doors, and new lobby and basement doors. The DRA ruled for landlord in part, but denied increases for the lobby and basement doors because the MCI application was submitted more than two years after the work was completed. The DRA partially granted the costs of the courtyard concrete and fencing, and canopy and vestibule door installations. Landlord appealed and won, in part. The DRA correctly disallowed the cost of resurfacing six canopies, since canopy installations are primarily cosmetic in nature and are neither structural nor depreciable. But storefront demolition costs should be added to MCI costs since the work was done in connection with a qualifying vestibule installation. Courtyard fencing also was a necessary part of the courtyard rehabilitation and was an allowable cost. 

Rockaway One Company, LLC: DHCR Adm. Rev. Docket No. AR110023RO (3/28/18) [3-pg. doc.]