No MCI Increase for Work Done at Deregulated Buildings in Complex

Landlord applied to the DHCR in 2015 for MCI rent hikes based on installation of a roof/parapet, asbestos removal, and resurfacing of exterior walls. The DRA ruled for landlord. Tenants appealed and won in part. Tenants claimed that they shouldn't have to pay for MCI work performed at separate deregulated buildings owned by the same landlord and included in the MCI application. Contrary to landlord's claim, tenants argued that the four buildings included in the MCI application weren't part of a horizontal multiple dwelling. Landlord argued that the DHCR permits the filing of an MCI on a building complex-wide basis. The DHCR found that, regardless of whether the four buildings in question were an HMD, two of the building were deregulated and therefore MCI costs for those two buildings shouldn't be included in the tenants' rent increases. Those two buildings were disconnected and didn't contain any rent-regulated apartments, weren't accessible to tenants of the other two buildings, and weren't subject to DHCR jurisdiction. As a result, the total MCI rent increases per room per month were reduced from $83.65 to $48.82.

Various Tenants of 211 East 60th Street: DHCR Adm. Rev. Docket No. GS410038RT (2/7/24)[3-pg. document]