No MCI Increase for Electric Range Stoves Since Group Work No Longer Eligible

Landlord applied to the DHCR in 2021 for MCI rent hikes based on installation of electric range stoves in building apartments. The DRA ruled against landlord, finding that these items didn't qualify for MCI rent increases.

Landlord appealed and lost. Landlord claimed that this installation was done in every apartment and was an MCI-eligible installation of "new components."  But the DHCR pointed out that, under HSTPA amendments to the RSL, "group work" done in individual apartments that wasn't otherwise an improvement to an entire building no longer constituted an MCI. Instead, work must be "essential" for the preservation, energy efficiency, functionality or infrastructure "of the entire building." The HSTPA amendments became effective immediately on June 19, 2019, and therefore applied to the post-HSTPA DRA decision in this case. 

Noonan Towers Company LLC: DHCR Adm. Rev. Docket No. KO610019RO (4/25/24)[3-pg. document]