No MCI Increase for Cosmetic Work Done in Connection with Vestibule Door

Landlord applied for MCI rent hikes based on installation of front and rear vestibule doors and a TV/security system. The DRA ruled for landlord but disallowed several expenses related to the vestibule doors installation. Landlord appealed and lost. The DRA had approved costs for supplying and installing the new aluminum doors and magnetic locking systems, but disallowed expenses including glass installation, preparation of the vestibule walls and tile installation, frameout and installation in the hallway entrance areas with aluminum and facia materials, granite and finishing materials, and a front-entrance canopy. The disallowed costs covered cosmetic improvements done for the purpose of modernizing the vestibule area. Under long-standing DHCR policy, lobby or vestibule renovations that are cosmetic in nature, or done to modernize the lobby/vestibule area, are considered ordinary repairs and maintenance, and aren't MCIs. Landlord claimed that, in other cases, the DHCR had approved similar work as MCIs, but those cases involved building-wide installations rather than work limited to the vestibule area. 

162-20 LLC: DHCR Adm. Rev. Docket No. HP110012RO (9/7/22)[2-pg. document]