No Increase for Roof and Pipe Insulation

Landlord applied for MCI rent hikes based on a number of improvements, including roof and piping insulation. The DRA ruled against landlord, finding that these items were repairs rather than MCIs. Landlord appealed, claiming that the insulation was done for energy conservation purposes. The DHCR policy was to permit rent increases based on 50 percent of proven costs in such instances. The DHCR ruled against landlord. The DHCR's MCI policy concerning energy conservation hadn't been expanded to include roof and/or pipe insulation.

Pinehurst Partners/Alesi: DHCR Adm. Rev. Dckt. Nos. FE530301RO, FE510230RT (4/22/97) [4-page document]