New Flooring Installed Only on Landings Didn't Qualify as MCI

LVT Number: #27623

Landlord applied for MCI rent hikes based on building-wide floor finishing. The DRA ruled against landlord, who appealed and lost. While flooring installation is a major capital improvement, to qualify as an MCI, the floors of all public areas, including lobbies, hallways, and landings, must be replaced. In this case, the flooring was replaced only on the landings and therefore wasn’t building-wide. Related work -- saddles, treads -- also therefore didn’t qualify for MCI increases. 

 

 

Landlord applied for MCI rent hikes based on building-wide floor finishing. The DRA ruled against landlord, who appealed and lost. While flooring installation is a major capital improvement, to qualify as an MCI, the floors of all public areas, including lobbies, hallways, and landings, must be replaced. In this case, the flooring was replaced only on the landings and therefore wasn’t building-wide. Related work -- saddles, treads -- also therefore didn’t qualify for MCI increases. 

 

 

Delter Realty LLC: DHCR Adm. Rev. Docket No. AO430030RO (2/9/17) [2-pg. doc.]

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