New Water and Sewer Lines Don't Qualify as MCI

Landlord applied for MCI rent hikes based on installation of new water and sewer lines. The DRA ruled against landlord. Landlord appealed and lost. To qualify as an MCI, work must be a building-wide improvement, depreciable under the Internal Revenue Code, no ordinary repairs, and required for the operation, preservation, and maintenance of the building structure. It is a long-standing policy that installation of new water or sewer lines doesn't qualify as an MCI.

1825-1827 2nd Avenue: DHCR Adm. Rev. Docket No. UG430035RO (1/25/07) [2-pg. doc.]