New Parking Lot Doesn't Qualify

Landlord applied for MCI rent hikes for the installation of a new parking lot. The DRA ruled against landlord. The DRA found that there was no parking lot previously. It was a new service added without tenant consent and couldn't be considered an MCI. Landlord appealed, claiming that the parking lot replaced broken-down garages and so replaced an existing parking facility. The DHCR ruled against landlord. The parking lot didn't replace an item that existed or had a useful life. Even if the parking lot was installed on land that may have had garages on it, the garages were never registered as a service with the DHCR. And they had been torn down years ago. The parking lot also didn't benefit tenants as an MCI. Tenants couldn't use the parking lot unless they paid landlord a separate fee, and landlord said if not enough tenants rented spaces, it would rent to the general public.

Kew Gardens Assocs.: DHCR Adm. Rev. Dckt. Nos. RG110017RO & RG110076RT (6/1/04) [4-pg. doc.]