Increase Granted for Elevator Upgrade Costs

Landlord applied for MCI rent hikes based on an elevator upgrade. Tenants opposed the rent hikes. In a prior proceeding, the DHCR gave landlord permission to replace two manually operated elevators with automatic units on the condition that landlord install security cameras, a telephone system, and storage lockers. The DHCR specified that no MCI rent hike would be allowed for these installations. Tenants claimed that the DHCR's prior decision barred any MCI rent hike for the elevator upgrade. The DHCR ruled against tenants. Tenants appealed, claiming that the DHCR's decision was unreasonable. The court ruled for tenants and revoked the MCI rent hikes.
The DHCR and landlord then appealed and won. The DHCR's prior ruling in the service substitution case clearly limited the bar against MCI rent hikes to the portion of elevator replacement or upgrade costs that were directly related to maintaining building security. The DHCR's approval of landlord's MCI application was reasonable and was upheld.

900 West End Avenue Tenants Association v. DHCR: NYLJ, 7/17/08, p. 35, col. 6 (App. Div. 1 Dept.; Tom, JP, Friedman, Nardelli, Catterson, Moskowitz, JJ)