No Proof Landlord's Affiliate Was General Contractor for MCI Work

Landlord applied for MCI rent hikes based on installation of a new roof and facade work. Tenant appealed and lost. He claimed that there was an identity of interest between landlord and its general contractor, that the cost of the work was inflated, and that it was cosmetic in nature. While the contractor in question was an affiliate of the landlord entity, it wasn't the general contractor for the MCI work and there was no proof of payment. At the time the work was performed, it was DHCR policy to grant MCI increases based on the actual cost of the work, and landlord proved its costs. And, under the Rent Stabilization Code and long-standing DHCR policy, both the installation of a new roof and facade restoration as performed qualified as MCIs. The window capping installed to ensure weathertightness of the building facade was other necessary work directly related to the MCI-qualifying facade restoration. 

Syllman: DHCR Adm. Rev. Docket No. HM110001RT (7/9/20) [3-pg. doc.]