Backflow Prevention Device Qualifies as Major Capital Improvement

Landlord applied for MCI rent hikes based on the installation of a backflow preventer. The DRA ruled for landlord. Tenants appealed and lost. Tenants claimed that a backflow prevention device didn’t qualify as an MCI. But installation of backflow preventers when required by law constitute MCIs.  According to Rent Stabilization Code Section 2522.4(a)(2)(iii), a building-wide improvement that's necessary to comply with a specific requirement of law qualifies for an MCI rent increase. And NYC and NY State regulation and code required landlord to install the backflow device. [Download PDF of decision here.]

166 Second Avenue Tenants’ Association: DHCR Adm. Rev. Docket No. CW430024RT (4/27/16) [2-pg. doc.]