• The work claimed by the owner benefitted The cost claimed by an owner (Claimed Cost) is
a commercial entity and the owner did audited and verified by DHCR and is reduced by:
not properly allocate the MCI costs to the any items that do not qualify as MCIs, costs that
commercial space. the owner cannot prove, and insurance payments
and/or government grants that paid for part of the
• The building owner is not maintaining all MCI.
required services in the building, such as
providing gas, heat, hot water, etc. This arrives at the Approved Cost, which is
either the amount of the Claimed Cost minus the
• The owner completed the MCI work in deductions made by DHCR or the reasonable
different stages spread out over many years. cost of the installation. The Approved Cost is then
adjusted if the MCI benefitted any commercial
• Some or all of the work was done by the space at the building by the square feet of the
Superintendent or someone related to the commercial space in relation to the whole building.
owner. The net approved cost is then amortized (spread
out) over the time period specified by law (144
• The owner’s MCI application did not include a months for buildings of 35 or fewer units and 150
signed affidavit from all of the contractors to months for a building larger than 35 units). This
prove they finished the work and were fully amount is further divided by the total number of
paid. rooms in the building. This gives us the per room,
per month rent increase. The apartment rent
• Some of the MCI costs were ineligible or increase is found by multiplying this amount by the
filing fees. number of rooms in the apartment.