MCI Increase Granted for Gas Piping Installed with Unit Renovations

The DHCR's DRA granted landlord's application for MCI rent hikes based on the installation of gas piping. Tenants appealed and lost. They claimed that the gas piping was installed in connection with apartment renovations that combined four apartments into two new apartments. They also argued that landlord's claimed costs were more than the amount included in cancelled checks submitted with the MCI application. The DHCR noted that a gas piping installation meets the definition of an MCI subject to rent increases. Landlord didn't combine the claimed costs of the gas piping with the apartment renovations. In its MCI application, landlord claimed only the costs of the gas piping work, while DOB's permit authorized both the gas piping installation and apartment renovation construction. Landlord claimed $48,000 for the gas piping installation, and didn't claim the entire $56,000 paid to its plumber for the work. So landlord didn't combine the costs of the gas piping with the apartment renovations. Landlord also properly detailed the payments made for the MCI.

Various Tenants of 144 East Broadway: DHCR Adm. Rev. Docket No. HR410033RT (9/29/22)[2-pg. document]