MCI Increase Granted for Elevator Upgrade

The DHCR's DRA granted landlord's application for rent increases based on an MCI for an elevator upgrade and new elevator cabs. Tenant appealed and lost. Tenant claimed that the DHCR should have allocated a portion of the MCI cost to commercial tenants in the building. But landlord did allocate a portion of the cost to the basement laundry room. Tenant also claimed that landlord benefitted because it used the elevators to showcase apartments in the building and that landlord's employees used the elevators to perform janitorial and other services in the building. But these things didn't show that landlord benefitted from the MCI. It was also well-established DHCR policy that an elevator upgrade that included installation of a new controller and selector constitutes an MCI. Landlord's elevator cab refurbishment also qualified for an MCI increase because it was other necessary work performed in connection with the elevator upgrade. And at the time landlord performed the work, there was no reasonable cost requirement. So this claim by tenant was denied.

Shahid: DHCR Adm. Rev. Docket No. FQ110006RT (5/19/21) [3-pg. doc.]