Landlord Co-op Corporation Gets MCI Increase for New Windows

Landlord cooperative corporation applied for MCI rent hikes to the building's rent-stabilized tenants based on installation of new apartment windows with related window sill replacement and sidewalk bridging during the work period. The DRA ruled for landlord.

Tenants appealed for a number of reasons and lost. The MCI application was filed within two years of completion of the work. There was no proof that the cost of other work was commingled with the MCI costs and no proof of duplicate payments or work. Also, it's long-standing DHCR policy that the owner of co-op shares allocated to rent-regulated units is eligible to apply for and be granted an MCI rent increase for qualified work that has been contracted for and paid by the co-op corporation. There was no proof that the initial cash reserve fund was used to pay for the work at issue, so the amount of any special assessment paid by the co-op shareholders was irrelevant. There was no reason to allocate any portion of the MCI costs to commercial areas of the building since the work didn't affect the commercial areas. The work wasn't piecemeal. Landlord replaced 1,730 out of 1,777 windows and 21 out of 25 terrace doors. So, 97 percent of the windows and glass terrace doors were replaced. Co-op unit owners had replaced the remaining windows and terrace doors. There also was no proof of improper installation. 

Rent Stabilized Tenants Association: DHCR Adm. Rev. Docket No. BU410063RT (10/11/19) [3-pg. doc.]