Garage Roof Unattached to Residential Building Didn't Qualify as MCI

Landlord applied to the DHCR for MCI rent hikes based on installation of a boiler/burner, courtyard and walkways, waste compactor, TV/security camera system, and a garage roof and door. The DRA ruled for landlord in part but denied a portion of the courtyard and walkway costs, and denied the costs for the garage roof and doors.

Landlord appealed and lost. It's DHCR's policy that replacement of a garage roof doesn't qualify as an MCI since garages are usually not required for the operation, preservation, and maintenance of a residential building. Where the DHCR has granted MCI increases for garage roofs, the garages were attached to and formed an extension of the residential building. Here, the garages were free-standing and weren't attached to the building. As to the courtyard and walkway installation, the installation of a new main entry gate into the parking area, removal of trees and old electric wiring, walls and columns in the garage, and landscaping material didn't qualify because they were cosmetic in nature and weren't shown to be necessary for the completion of the underlying courtyard and walkway.

Clarendon Gardens, LLC: DHCR Adm. Rev. Docket No. GU210002RO (7/1/22)[3-pg. document]