Lobby Repairs Can't Be Part of MCI Increase for Vestibule

Landlord applied for MCI rent hikes based on installation of new windows, new main entry and vestibule doors, and a CCTV security system. The DRA ruled for landlord and deducted a commercial allocation based on information on commercial square footage in the building submitted by landlord. The DRA also deducted repair costs from the entry/vestibule door MCI.

Landlord appealed and lost. Landlord argued that the amount of the building's commercial space allocation should be reduced because landlord overstated the amount of the commercial parking area when it filed its application. But the DRA properly relied on information submitted by landlord with its MCI application. And the DRA properly excluded costs for restoration of walls and floors in the lobby and vestibule areas, glass installation in an unspecified location, installation of framing material in an unspecified area, and the construction of a canopy over the entry way. Each of these items, standing alone, constituted ordinary repairs and maintenance, and weren't shown to be necessary work related to the MCIs.

Parsons Manor LLC: DHCR Adm. Rev. Docket No. FN110001RO (4/29/21) [2-pg. doc.]