Parking Area Wasn't Commercial Space for MCI Purposes

Landlord applied for MCI rent hikes based on installation of a new roof, facade and parapet restoration, bulkhead and entrance doors, intercoms, and related architectural fees. The DRA ruled for landlord but set the effective date of the MCI rent hike as Jan. 1, 2013, after finding that this was the first rent payment date after landlord submitted additional required information regarding the building's commercial space.

Landlord appealed and won. Landlord argued that it submitted all required information concerning the commercial space with its initial application filing. With its application, landlord reported that the building contained 250 square feet of commercial space, all part of a laundry facility. The DRA later requested information regarding use and square footage of a parking area. Landlord advised the DRA that the outdoor parking area was used only by building residents. In response to the DRA's second request, landlord submitted square footage information for the parking area in December 2012. But it was long-standing DHCR policy that, if a parking area or garage was used only by building residents, it wasn't considered commercial space for MCI purposes. And the DRA didn't include the parking area's square footage in its commercial space allocation for the MCI increase. The information landlord submitted with its initial application was complete, and the effective date of the MCI application was Nov. 1, 2009. [Download PDF of decision here.]

Unger: DHCR Adm. Rev. Docket No. BO630014RO (1/30/19) [2-pg. doc.]