Shorter Amortization Period Applies

January 1, 1995

LVT Number: 9361

Landlord applied for MCI rent hikes, based on the installation of windows building-wide. The DRA granted the rent hikes, and tenant appealed. She argued that since the window installation work began after June 29, 1990, the approved cost should have been amortized over 84 months rather than 60 months. The DHCR ruled for landlord. The proper amortization period is 84 months if the physical work began or the contract was signed on or after June 29, 1990. But, in this caseeven though the work began after June 29, 1990the installation contract was signed in December 1989.

Landlord applied for MCI rent hikes, based on the installation of windows building-wide. The DRA granted the rent hikes, and tenant appealed. She argued that since the window installation work began after June 29, 1990, the approved cost should have been amortized over 84 months rather than 60 months. The DHCR ruled for landlord. The proper amortization period is 84 months if the physical work began or the contract was signed on or after June 29, 1990. But, in this caseeven though the work began after June 29, 1990the installation contract was signed in December 1989. So, the shorter amortization schedule of 60 months applies.

Singer: DHCR Adm. Rev. Dckt. No. IC 630088-RT (11/10/94) [2-page document]

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