New MCI Application Didn't Duplicate Prior MCI Granted

June 30, 2011

LVT Number: #23486

Landlord applied for MCI rent hikes in 2007 based on an elevator upgrade. The DHCR ruled for landlord because the useful life of a prior elevator upgrade hadn't expired. The DHCR had granted MCI rent hikes for the prior work in 1991. Landlord appealed, claiming that the DHCR's decision was unreasonable. The court ruled against landlord, but the appeals court reversed. It was arbitrary and capricious for the DHCR not to recognize that the 2007 MCI was completely different from the 1991 MCI. The case was sent back to the DHCR for reconsideration.

Landlord applied for MCI rent hikes in 2007 based on an elevator upgrade. The DHCR ruled for landlord because the useful life of a prior elevator upgrade hadn't expired. The DHCR had granted MCI rent hikes for the prior work in 1991. Landlord appealed, claiming that the DHCR's decision was unreasonable. The court ruled against landlord, but the appeals court reversed. It was arbitrary and capricious for the DHCR not to recognize that the 2007 MCI was completely different from the 1991 MCI. The case was sent back to the DHCR for reconsideration.

925 D Realty LLC v. DHCR: NYLJ, 6/30/11, p. 26, col. 6 (App. Div. 1 Dept.; Gonzalez, PJ [dissenting], Friedman, Moskowitz, Freedman, Roman, JJ)

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