As a rent stabilized tenant, do I have to pay increases for major capital improvements (MCIs) in perpetuity?
Yes. This can be somewhat confusing. The DHCR calculates the rent increase based on a 7 year (84 month) amortization schedule of the certified allowable costs for the MCI. In other words, the owner can add about 1/84th of the cost of the project to his/her monthly rent roll for the building. This building wide increase is then allocated among the units in the building on a per room basis. Notwithstanding this notion of a seven year amortization, so long at the increase was lawful, it becomes part of the base rent and remains a permanent part of the legal rent. In other words, the 1/84th factor is simply used to calculate the adjustment, not to limit its application. Top | Main FAQ Menu Disclaimer: By providing answers to frequently asked questions the staff of the Rent Guidelines Board attempts to clarify the often complex programs and regulations governing landlord tenant relations in NYC. However the information provided herein does not represent official policies or opinions of the
Yes. This can be somewhat confusing. The DHCR calculates the rent increase based on a 7 year (84 month) amortization schedule of the certified allowable costs for the MCI. In other words, the owner can add about 1/84th of the cost of the project to his/her monthly rent roll for the building. This building wide increase is then allocated among the units in the building on a per room basis. Notwithstanding this notion of a seven year amortization, so long at the increase was lawful, it becomes part of the base rent and remains a permanent part of the legal rent. In other words, the 1/84th factor is simply used to calculate the adjustment, not to limit its application.
