MCI Increase Granted for Air Conditioning Chiller System

Landlord applied for MCI rent hikes based on installation of an air conditioning chiller system with related engineering. The DRA ruled for landlord. Tenant appealed and lost. Tenant complained that the portion of the MCI cost applicable to commercial space and common area space utilized by building staff should be discounted from the cost on which the MCI increase was based. But there was no portion of the building's commercial space that benefitted from the MCI. So there was no apportionment needed for the commercial space. With regard to the common areas of the building that weren't rented as commercial space, such as hallways and basements, including space in such areas used by building staff, it was well establised that those areas were part of the residential space. So no portion of the MCI costs need be discounted for those areas of the building.

Allister: DHCR Adm. Rev. Docket No. GV410022RT (5/17/19) [2-pg. doc.]