Tenants with Defective Windows Excused from Paying MCI Increase

Landlord applied for MCI rent hikes based on installation of a boiler/burner, windows, and terrace doors, as well as elevator upgrading. The DRA ruled for landlord. Tenants appealed and won, in part. Tenants claimed that the window installation was defective and therefore no MCI increase was warranted. But only 13 apartments out of 103 had problems with the windows, based on DHCR inspection. This was insufficient to disallow the entire MCI cost. But the DHCR exempted from the MCI rent increase those tenants who had the defective windows. Tenants also objected to the MCI rent increase to all tenants for terrace doors because only 12 apartments had terraces. But an MCI is considered to have been performed building-wide when all similar components have received the same work. A qualifying MCI benefits all building tenants, either directly or indirectly.

Envoy Towers Associates/Envoy Towers Stabilized Tenants Group: DHCR Adm. Rev. Docket Nos. BU410030RO, BU410040RT (4/27/16) [3-pg. doc.]