Two Elevator Upgrades Not Part of One MCI

Landlord applied for MCI rent hikes based on the installation of an automatic elevator with related fixtures and modernization. This replaced an existing nonfunctional manual elevator. Landlord also refurbished and upgraded a second existing automatic elevator. Landlord also pointed, grouted, and sealed the slab and pit at the base of the second elevator shaft and the walls of the elevator shaft. The DRA ruled against landlord. The DRA found that the replacement of the first elevator was completed more than two years before landlord filed its MCI application. The DRA also found that the upgrading work to the second elevator didn't qualify as an MCI in the absence of installation of a new controller. The DRA disallowed the elevator pointing and grouting because the work was done more than two years before filing the MCI application, the work didn't qualify as an MCI, and the same work had been done less than 15 years earlier. Landlord appealed, arguing that the DHCR should treat the work on the two elevators as one project, not as three separate MCIs. The DHCR ruled for landlord in part. The DRA properly treated the work as three separate MCIs, and correctly found that for two of the items landlord's application was filed more than two years after the work was done. But landlord did submit proof that a controller was installed at the same time as the work was done to the second elevator. So the DHCR granted an MCI rent hike for this work.

Ashlar, Inc.: DHCR Adm. Rev. Docket No. VJ710002RO (1/30/08) [6-pg. doc.]