MCI Rent Hike Granted for Elevator Cab Remodeling

Landlord applied for MCI rent hikes based on elevator upgrading. The DCHR ruled for landlord in part, but disallowed $12,750 for the elevator cab after DHCR inspection found that the cab didn't appear to be recently installed. Landlord appealed. The court ruled against landlord, but the appeals court sent the case back to the DHCR for reconsideration. The appeals court said that the DHCR didn't notify landlord during the proceeding that the elevator cab's workmanship was in question or gave landlord a chance to respond. Therefore, landlord was denied due process. Landlord then showed the DHCR that the elevator cab wasn't replaced but was remodeled when the elevator was upgraded with a new controller. DHCR inspection had taken place over a year after the work was done and, at that time, there was duct tape over the panel due to vandalism. Landlord submitted before and after photos, and its elevator contractor confirmed that the work was done. The DHCR ruled for landlord. Elevator remodeling qualified as other necessary work performed in connection with and directly related to the elevator upgrading, which was a qualifying MCI.

48-50 38th Street: DHCR Adm. Rev. Docket No. AT110003RP (2/7/13) [3-pg. doc.]