Cost of Hot Plates Provided to Tenants During Gas Re-piping Removed from MCI Costs

Landlord applied for MCI rent hikes based on gas re-piping. The DRA ruled for landlord. Tenants appealed and won, in part. Among other things, tenants pointed out that landlord had provided hot plates to tenants while gas service was cut off during the re-piping. They objected to the fact that the cost of the hot plates was included in the MCI increase. The DHCR agreed that providing the hot plates wasn't "other necessary work" performed in connection with, and directly related to, an MCI. The hot plates didn't improve, restore, or preserve the quality of the structure. So the cost of the temporary hot plates was removed from the MCI total. Also, sales tax had been included in the MCI increase. But sales tax included in the purchase cost of materials wasn't an MCI-eligible expense. So this was deducted from the granted MCI. 

Lower Seaman Avenue Tenants Association: DHCR Adm. Rev. Docket No. JS410037RT (3/31/23)[5-pg. doc.]