New Gutters Alone Don't Qualify

Landlord applied for MCI rent increases based on the installation of new flange gutters at the building. The DRA denied landlord's application, and landlord appealed. Landlord argued that the New York State Department of Taxation regulations define new gutters as capital improvements. The DHCR denied landlord's PAR. Under DHCR policy, new gutter installation alone doesn't qualify as an MCI. The Rent Stabilization Code states that the improvement must be building-wide; depreciable under the Internal Revenue Code; required for the operation, preservation, and maintenance of the structure; and replace an item whose useful life has expired. The State Tax Department's definition of capital improvements is different and serves a different purpose.

Kalt: DHCR Adm. Rev. Dckt. No. DA 130120-RO (5/24/93) [2-page document]