Landlord Didn't Prove Useful Life Waiver Should Apply to Elevator Upgrade MCI

Landlord applied to the DHCR for MCI rent hikes based on elevator upgrading. The DRA ruled against landlord because the DHCR had issued a prior MCI rent increase in 2008 for elevator upgrading that was still within its useful life.

Landlord appealed and lost. Landlord argued that the prior MCI project included only a new controller, while the new MCI included the replacement of the main machine and motor. Landlord also said that it submitted a request for waiver of the useful life of the prior MCI with its new application. But the new MCI work was begun in 2018, within the 25-year useful life of the prior elevator upgrade. And a useful life waiver request must be made before filing an MCI application unless the work was done because of an emergency creating a dangerous condition. Here, the useful life waiver request was submitted at the time of the MCI application filing, and simply stated that the elevator was "not safe." But no proof of an emergency condition was submitted. As to the work itself, the DHCR no longer had records of landlord's 2008 MCI application. And landlord's 2018 application didn't show that the scope of work in 2008 consisted only of the installation of a new controller and didn't actually encompass a major upgrade such as the one performed in 2018.

Woodruff 101 LLC: DHCR Adm. Rev. Docket No. IO210004RO (3/31/23)[2-pg. document]