• MCI increases may be granted based upon apartments, and it must involve the replacement
reasonable costs. of one of the building’s major systems. The MCI
work must be for the operation, preservation,
• Buildings with 35 or fewer units are and maintenance of the building. MCIs must be
amortized over 12 years, buildings with more depreciable as provided by the Internal Revenue
than 35 units are amortized over 12 ½ years. Code. In addition, the improvement must be
essential for the preservation, energy efficiency,
• MCI increases are effective and collectible functionality or infrastructure of the entire building
on the first day of the first month following 60 and not for operational costs or unnecessary
days from the mailing date of the order. cosmetic improvements or for any group work
done in individual apartments that is not otherwise
• MCI increases are temporary and must be
an improvement to the entire building.
removed from the rent 30 years after the
date the increase became effective inclusive
DHCR will not grant a MCI rent increase for
of any increases granted by the local rent
ordinary repairs which only maintains the building
guidelines board.
in adequate working order. In addition, the
building owner also must make sure that the MCI
• MCI increases, which were previously
item being replaced or work being completed
capped at either 6% or 15%, are now capped
has outlived the DHCR’s “Useful Life Schedule”
at 2% per year.
which can be found under DHCR Fact Sheet
#33 available at www.hcr.ny.gov/fact-sheets.
#24 Major Capital Improvements (MCI) The “Useful Life Schedule” provides the number
ADDENDUM: Questions and Answers of years a utility or structure within the building
should last before it is replaced and thus eligible
for a MCI rent increase. For example,