No Increase for Sidewalk Outside Property Line

Landlord applied for MCI rent increases based on the cost of replacing certain portions of sidewalk pavements in and around a five-building apartment complex. The DRA ruled against landlord, and landlord appealed. The DHCR ruled for landlord in part. Under DHCR Operational Bulletin 84-4, an MCI may not be given for work that doesn't increase the depreciable tax base of the property. And landlord can't depreciate anything that it doesn't own. So the portion of the cost of the work to replace the sidewalks outside the property line of the apartment complex didn't qualify as a basis for MCI rent increases.

Liggio: DHCR Adm. Rev. Dckt. Nos. BG910281RT, BG910286RT (1/23/98) [5-page document]