Repiping of Gas Lines Qualifies as MCI

The DHCR's DRA granted landlord's application for MCI rent hikes based on repiping of gas lines at the building. Tenants appealed and lost. Tenants claimed that: (1) the work shouldn't qualify as an MCI because it was undertaken due to an emergency; (2) they should be compensated for gas service that was shut off for some time; (3) landlord received J-51 tax benefits for the work; and (4) building-wide services weren't being maintained. Some tenants claimed that they were overcharged. The DHCR noted that it didn't matter why the new gas lines were installed, and they qualified as an MCI. Tenants had filed a service reduction complaint with the DHCR concerning gas service, which was denied. If other, unrelated, services weren't maintained, tenants could file similar complaints. There was no proof that landlord received J-51 tax benefits for the work, which the DHCR monitored. If landlord collected an MCI increase from any tenants under a vacancy lease term without including a lease clause that rent was subject to an MCI rent increase during that lease term, those tenants could claim rent overcharge.

Various Tenants of 3555 Bruckner Blvd.: DHCR Adm. Rev. Docket No. BU610054RT (3/25/19) [2-pg. doc.]