Courtyard Not Accessible to Tenants

Landlord applied for MCI rent hikes based on courtyard improvement. The DRA ruled against landlord because tenants didn't have access to the courtyard. Landlord appealed, claiming that it didn't matter if tenants had access to the courtyard after it made the improvements because tenants didn't have access to the courtyard before the improvements. Landlord also said that giving full-time courtyard access would compromise the integrity of the building's security. The DHCR ruled against landlord. It is longstanding DHCR policy that a courtyard improvement doesn't qualify as an MCI unless, among other things, the area is accessible to tenants. This policy has been upheld by the courts.

Globel Realty Co.: DHCR Admin. Rev. Dckt. No. FK430171RO (8/7/02) [2-pg. doc.]