Steel Fence Doesn't Qualify

February 1, 1994

LVT Number: 8514

Landlord applied for MCI rent increases based on the installation of a steel fence around the building. The DRA ruled against landlord, and landlord appealed. Landlord claimed that the fence was depreciable under the Internal Revenue Code, that it was installed for the preservation and maintenance of the structure since it kept out trespassers, and that it was an improvement that benefitted all tenants. The DHCR ruled against landlord. Replacement of a steel fence doesn't qualify as an MCI; it's considered normal repairs and maintenance.

Landlord applied for MCI rent increases based on the installation of a steel fence around the building. The DRA ruled against landlord, and landlord appealed. Landlord claimed that the fence was depreciable under the Internal Revenue Code, that it was installed for the preservation and maintenance of the structure since it kept out trespassers, and that it was an improvement that benefitted all tenants. The DHCR ruled against landlord. Replacement of a steel fence doesn't qualify as an MCI; it's considered normal repairs and maintenance. The fence isn't required for the operation, preservation, and maintenance of the structure.

32-16 Crescent Street: DHCR Adm. Rev. Dckt. No. DJ 130184-RO (11/23/93) [3-page document]

Downloads

DJ130184-RO.pdf102.2 KB

Topics

More like this