When owners make improvements or installations An owner must file an OWNER’S APPLICATION
to a building subject to the rent stabilization or FOR RENT INCREASE BASED ON MAJOR CAPITAL
rent control laws, they can apply to the Division IMPROVEMENTS (DHCR form RA-79) available
of Housing and Community Renewal (DHCR) for from DHCR Borough Rent Offices or from the
approval to raise the rents of the tenants. When main office at Gertz Plaza, 92-31 Union Hall Street,
the improvement or installation meets certain Jamaica, NY 11433, or from the DHCR website.
requirements it will be considered a Major Capital
Improvement (MCI). To qualify as an MCI, the Small building owners are encouraged to contact
improvement or installation must: the DHCR’s SBO Unit for technical assistance
prior to filing the application. All owners and the
1. be depreciable pursuant to the Internal managing agent in cooperative/condominium
Revenue Code, other than for ordinary corporations need to carefully review the
repairs; MCI Instructions (RA-79 Instructions) while
2. be essential for the preservation, energy completing the application (RA-79) as they
efficiency, functionality or infrastructure of the are more detailed than this Fact Sheet, which
entire building; contains general information.
3. directly or indirectly benefit all tenants; and,
4. meet the requirements set forth in the useful The completed application must contain:
life schedule contained in the applicable Rent
Regulations. 1. an itemized list of the work performed and a
description or explanation of the reason or
Some examples of MCI items include boilers, purpose of such work;
windows, electrical rewiring, plumbing and roofs. 2. certifications provided by the owner and
Unnecessary cosmetic improvements or work contractors regarding the