DHCR Not Required to Inspect Apartments Before Approving MCI Increase

Landlord applied for MCI rent hikes based on rewiring and installation of a new burner. The DRA ruled for landlord. Tenants appealed and lost. Tenants claimed that insufficient wiring work was done, that the wiring in many apartments was substandard, and that there were some electrical violations. The DHCR noted that, under long-standing DHCR policy, rewiring qualifies as an MCI when the work includes the installation of new service to the building along with new copper risers and feeders extending from the property box in the basement to every apartment that are of a sufficient capacity to accommodate the installation of air conditioning circuits and outlets, as well as two double outlets in the kitchen to accommodate heavy-duty appliances. It is not necessary that all branch wiring and all electrical fixtures within each apartment be replaced in order for rewiring work to qualify as an MCI. The DHCR does not determine whether the wiring within individual apartments is compliant with municipal code requirements. In this case, landlord's electrical work did receive a sign-off from DOB. DHCR apartment inspections weren't required, and the DRA had the discretion to grant the MCI rent hike without conducting individual apartment inspections. 

Various Tenants of 400 East 57th Street: DHCR Adm. Rev. Docket No. AR430058RT (10/25/17) [2-pg. doc.]