Security Booth Doesn't Qualify

Landlord applied for MCI rent increases based on installation of an intercom system and a security booth. The DRA granted increases for the intercom system but wouldn't allow any rent increase for the security booth. Landlord appealed, claiming that the security booth was installed in conjunction with the intercom system. The DHCR ruled against landlord. The security booth was installed a little over two years after the intercom system, so it couldn't be said to have been installed in conjunction with the intercom system. And the security booth by itself didn't qualify as an MCI. It didn't replace an item whose useful life had expired; it created a completely new service. Landlord should have gotten consent of 75 percent of tenants and applied for a new service rent increase.

Colony House Assocs.: DHCR Adm. Rev. Dckt. Nos. EH230025RO, EK230121RO (10/26/95) [2-page document]