1 800-518-0890 MAJOR CAPITAL IMPROVEMENTS
You have the right to contest a landlord's application to the
DHCR for a major capital improvement (MCI) rent increase. If an
application is made, you will receive a notice from the DHCR and
be given an opportunity to review the landlord's complete
application. You will have a thirty-day period within which to
comment.
Major capital improvements are generally building-wide
improvements such as a roof replacement, installation of a new
boiler, repiping of the hot and cold water system, or rewiring
throughout the building. The cost of asbestos abatement may be
included, if done in conjunction with an MCI. Improvements to
individual apartments are not considered MCI's, unless the same
improvement is made in all apartments, like installation of new
windows. Ordinary repairs or the restoration of a service
previously provided will not qualify as MCI's.
MCI rent increases are limited to 6% per year for rent stabilized
apartments and 15% per year for rent controlled apartments. These
increases become a permanent part of the rent and are not
eliminated when the landlord has recovered sufficient rent
increases to pay for the costs of the MCI.
The DHCR will audit the landlord's proof of expenses. MCI
requests are often reduced by the DHCR during such review. If you
believe the proof is wrong or inadequate, you may raise an
objection.
There are a number of other grounds for tenants to object to the
landlord's MCI application. The application and the building
should be carefully checked to see if all the work claimed was
actually done, if the work was done poorly, or if the work done
may not qualify as an MCI. Also, the item replaced must have
exceeded its useful life according to a schedule published by the
DHCR. The DHCR will only send one of its inspectors to look at
the building if the tenants have raised an objection as to
whether the work was done or as to the quality of the work.
In commenting on an MCI application, tenants should list all
docket numbers of pending complaints of service reductions filed
with the DHCR. Service reductions should also be detailed in the
answer to the MCI application and may lead to dismissal of the
application or postponement of the collectibility of any MCI rent
increase.
Finally, check the room count given by the landlord for your
apartment. The 1984 rent registration is not binding for this
purpose. The definition for MCI purposes is contained in the
landlord's application papers.