MCI Rent Hike Reduced by Amount Funded by Insurance

Landlord applied for MCI rent hikes based on the installation of a new boiler/burner costing $117,000. The DRA ruled for landlord in part, but disallowed $68,425 in net costs that were reimbursed by insurance proceeds received after a fire. Landlord appealed, claiming that only $31,330 of the insurance money went to the boiler/burner. Landlord said that the insurance proceeds also covered costs for a temporary boiler that wasn't part of the MCI. The DHCR ruled against landlord. Landlord presented insufficient proof that only $31,330 of the insurance money went toward the MCI. And the MCI increase award must be offset by the amount of the fire insurance proceeds.

308 West 30th Street: DHCR Adm. Rev. Docket No. TI410061RO (6/12/08) [2-pg. doc.]