Minor Room Count Change Was De Minimis

Landlord applied for MCI rent hikes based on the installation of new windows, elevator upgrading, and other improvements costing $2,061,000. The DRA ruled for landlord in part, granting an increase based on $1,644,700 after disallowing the cost of air conditioner sashes and side glass. Tenants appealed. Among other things, they claimed that part of landlord's application was untimely and the work didn't qualify as MCIs.

The DHCR ruled against tenants. Landlord's MCI application was initially date-stamped by the DHCR on Feb. 21, 2007, and the elevator upgrading work was completed by Feb. 22, 2005. Landlord's application therefore was timely. Landlord also showed that the window installation and elevator upgrading qualified as MCIs by submitting all required documentation, including government permits and sign-offs, contracts, contractor's statement, and cancelled checks. The DHCR adjusted the room count for two tenants resulting in a total reduction in the number of rooms from 483 to 481. But the DHCR didn't recalculate the MCI increases for the building because the result would be de minimis.

505 Court Street Rent Stabilized Tenants Association: DHCR Adm. Rev. Docket No. XE230016RT (3/24/15) [6-pg. doc.]