Hallway Restoration Work Didn't Qualify as MCI

Landlord applied for MCI rent hikes based on carpet installation, hallway restoration, and a design consultant. The DRA ruled for landlord in part but disallowed any increase for the hallway restoration and design consultant costs. Landlord appealed and lost. The hallway restoration work, which included painting and installation of furnishings such as mirrors, crown molding, soffits, saddles, and decorative light fixtures, was decorative and cosmetic in nature and not necessary for completion of the carpet installation. Consultation with the designer also wasn't necessary to complete the MCI. Tenants also appealed and won, in part. Tenants claimed that landlord failed to clear all immediately hazardous violations in the building. Both sides submitted documentation to the DRA as to when violations were placed and cleared. The effective date of the MCI increase was delayed to reflect the first rent payment date that proof of violation removal was submitted.

Eastside 27, LLC/Victoria House Tenants Assoc.: DHCR Adm. Rev. Docket Nos. CS410027RO, CS410030RT (9/8/17) [3-pg. doc.]