Qualifications • Tenants have 60 days to respond to the owner’s MCI
application.
DEFINITIONS • MCI increases are prohibited for buildings with 35% or
Division of Housing and fewer rent regulated units.
Community Renewal (DHCR): • MCI increases are prohibited if there are hazardous
DHCR is the New York State agency violations on file with the local municipality in addition
that invests in communities, to immediately hazardous violations.
preserves and protects affordable
• MCI increases, which were previously capped at either
housing and enforces the state’s
6% or 15%, are now capped at 2% per year, and can
rent control and rent stabilization
only be collected once DHCR issues a written order
laws.
granting a rent increase.
Major Capital Improvements • MCI increases may be granted based upon reasonable
(MCIs): Building-wide costs.
improvements such as boilers, • Buildings with 35 or fewer units are amortized over 12
windows and roofs. years, buildings with more than 35 units are amortized
over 12 ½ years.
• MCI increases are effective and collectible on the
first day of the first month following 60 days from the
mailing date of the order.
• MCI increases are temporary and must be removed
from the rent 30 years after the date the increase
became effective inclusive of any increases granted by
the local rent guidelines board.
A PUBLICATION OF THE DIVISION OF HOUSING AND COMMUNITY RENEWAL OFFICE OF RENT ADMINISTRATION FS-24 (04/2025)
FACT SHEET #24: MAJOR CAPITAL IMPROVEMENTS (MCI) PAGE 2 OF 9
FACT SHEET #24: IN DETAIL
Definitions Application and Documentation