Commercial Tenant Must Pay Share of Increase

Landlord applied for MCI rent hikes based on the installation of a boiler/burner and asbestos removal. The DRA ruled for landlord but reduced the amount of the increase sought. The DRA found that two commercial spaces on the ground floor were being serviced by the new boiler and must share part of the MCI cost. Landlord appealed, claiming that commercial tenants had their own heating systems. He submitted copies of their leases as proof. The DHCR ruled against landlord. The building basement was heated by the new boiler and was used as a storage facility by the commercial tenants. So they benefited from the MCI and had to assume part of the cost.

108 W. 15th St.: DHCR Adm. Rev. Dckt. No. SH410058RO (1/13/05) [2-pg. doc.]