No Rent Hike for Resurfaced Courtyard Tenants Don’t Have Access To

Landlord applied for MCI rent hikes based on installation of a new compactor and concrete resurfacing of the building’s courtyard. The DRA ruled for landlord in part, granting the increase only for the compactor. Landlord appealed and lost. DHCR inspection showed that tenants didn’t have access to the resurfaced courtyard and that all exits to the courtyard were locked. The door to the entrance alley to the courtyard also was locked. Landlord claimed that tenants had access to the courtyard, but there was no proof of this at the time of DHCR inspection. Landlord also claimed there was no requirement that tenants had access. But Rent Stabilization Code Section 2522.4(a)(2)(i)(c) provides, in part, that an MCI must be an improvement to a building or building complex that inures directly or indirectly to the benefit of all tenants. Since tenants didn’t have access to the resurfaced courtyard, they didn’t benefit from the work.

Woodhaven 85, LLC: DHCR Adm. Rev. Docket No. ZD110050RO (12/16/15) [3-pg. doc.]