MCI Increase Granted for Courtyard and Walkways, Including Engineer Costs

Landlord applied for MCI rent hikes based on courtyard and walkway resurfacing. The DRA ruled for landlord. Tenants appealed and won, in part. The work qualified as an MCI. The previous courtyard and walkway surfaces were completely removed, and the entire original area within the property lines of the premises was resurfaced with concrete. All tenants had access to the courtyard and walkways. While tenants claimed that the resurfaced walkways were emergency exits, this didn't matter. Since tenants paid no prior MCI rent hike for the work, the useful life of the courtyard wasn't an issue. Landlord also showed that consulting engineer costs were needed in this case for inspection of water damage in the basement that had deteriorated the existing steel beams supporting the courtyard. But tenants correctly pointed out that the building's basement contained additional commercial space that should be included in the commercial deduction from the rent increase. So the MCI increase was reduced by $0.48 per room per month.

Hogue/Carino: DHCR Adm. Rev. Docket Nos. DW410005RT, DV410011RT (4/13/18) [2-pg. doc.]