Raising Rents to Cover the Cost of Major Capital Improvements in New York City
New York’s rent regulations allow building owners to increase rents when they perform verifiable improvements or install new building systems that benefit tenants and meet other requirements. Moreover, landlords may be able to increase rents to the point that the apartments are no longer subject to rent control or rent stabilization.
Detailed Guidance on MCI Compliance
Our attorneys help our clients understand and comply with the standards and requirements of the MCI program. For example, the improvements must be:
- Depreciable as defined by the Internal Revenue Service Code — not for ordinary repairs and maintenance
- Be made for the operation, preservation and maintenance of the building
- Meet other specific requirements established by the Division of Housing and Community Renewal
Improvements that meet the MCI requirements can also result in the owner receiving real estate tax credits from the City of New York. However, MCIs are frequently contested by tenants, requiring landlords to obtain knowledgeable legal assistance in order to realize the monetary benefits of improving their buildings.
Experience Clients Can Rely On
Our lawyers have substantial experience in this area and can represent you at any step in the process. We can help you pursue an increase your rent for capital improvements, deal with tenant opposition, or appeal a proposed increase that was improperly denied by the DHCR. Our goal is to help clients achieve the maximum revenue enhancements possible through the MCI program.