MCI Rent Hike Granted for Elevator Upgrades

Landlord applied for MCI rent hikes based on two elevator upgrades. The DRA ruled against landlord, finding that the useful life of the elevators hadn't expired. Landlord appealed and won. Under DHCR policy, the costs for converting from manual to automatic elevators are disallowed. But other costs can qualify. In a prior order, the DHCR gave landlord permission to convert from manual to automatic elevators on the condition that landlord replace the elevator operators with a staffed lobby attendant/concierge station and video security cameras. In that order, the DHCR said that landlord couldn't apply for MCI rent hikes until the expiration of the useful lives of any of the new installations. But the DRA mistakenly interpreted this order to disallow elevator upgrades that were unrelated to the conversion costs. Landlord could collect MCI rent hikes for the upgrade portion of the elevator work.

275 Central Park West: DHCR Adm. Rev. Docket No. TF430061RO (2/13/09) [5-pg. doc.]