MCI Rent Hike for Elevator Upgrade Delayed

The DRA denied landlord's application for MCI rent hikes based on elevator upgrading. The DRA found that the building wasn't secure since the upgrade had extended the elevator down to the parking levels. This allowed nonresidents who used the garage to gain access to the residential floors by entering the elevator from the garage areas. Landlord appealed and said that the security problem had been corrected. A new key fob system was installed, allowing only building residents to have access to the elevator. Landlord also argued that nonresidents who utilized the garage areas always had access to the upper floors by way of stairways accessible from the parking levels. So building security hadn't changed and this wasn't a valid reason to deny the MCI application.

The DHCR ruled for landlord and granted the MCI rent hike. The DHCR rejected landlord's claim that building security hadn't changed. The elevator upgrade gave nonresidents quick and easy access to the residential floors, resulting in a material decrease in building security. But landlord proved that the security issue had been remedied. The MCI rent hike was granted for rent-stabilized tenants effective the first rent payment date after the key fob system was installed.

156-08 Realty Co. LLC: DHCR Adm. Rev. Docket No. AM430020RO (8/16/17) [3-pg. doc.]