No Increase for Garage Roof

LVT Number: 11436

Landlord applied for MCI rent hikes for installation of a new room on the garage for the building. The DRA ruled against landlord, and landlord appealed. The DHCR again ruled against landlord. To qualify for rent increases, MCIs must be building-wide improvements, depreciable under the Internal Revenue Code, and required for the operation, preservation, and maintenance of the structure. Since the garage in this case was a free-standing structure not connected to the building, the installation of a new garage roof didn't qualify as an MCI.

Landlord applied for MCI rent hikes for installation of a new room on the garage for the building. The DRA ruled against landlord, and landlord appealed. The DHCR again ruled against landlord. To qualify for rent increases, MCIs must be building-wide improvements, depreciable under the Internal Revenue Code, and required for the operation, preservation, and maintenance of the structure. Since the garage in this case was a free-standing structure not connected to the building, the installation of a new garage roof didn't qualify as an MCI.

Samson Mgmt.: DHCR Adm. Rev. Dckt. No. IL610098RO (12/13/96) [2-page document]

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