Commercial Space Calculation to Be Based on Square Footage

Landlord applied for MCI rent hikes based on exterior restoration and roof installation, as well as architectural services and scaffolding. The DRA ruled for landlord, except that an increase for the scaffolding was denied. Landlord appealed, seeking modification of the DRA's order. The amount of the cost allocable to a commercial portion of the building was discounted in calculating the MCI rent hike. But landlord claimed that this calculation should have been based on square footage. The DHCR ruled for landlord. The DRA used the proper formula to calculate the commercial share of the MCI cost when landlord's application was pending. But the Rent Stabilization Code was amended in 2005 to provide for calculation based on square footage. Since this was the method in effect when landlord filed its PAR, it should apply. As a result of the recalculation, the amount of the MCI rent hike per room per month for each tenant was now $40.91 instead of $34.90.

220 West 93rd Street: DHCR Adm. Rev. Docket Nos. SB430020RO, SB430042RT (4/8/08) [5-pg. doc.]