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 8 OF 9
MCI CALCULATION CHART
Description Calculation
1. Owner claims $227,000 of capital work $227,000
Subtotal (claimed cost) $227,000
2. Audit shows $35K of ineligible costs (i.e. not −$35,000
substantiated, paid for by insurance, paid for by
gov’t grants, etc.); claim reduced by $35K
Subtotal (approved cost) $192,000
3. Commercial space accounts for 10 % of area of −$19,200
building; claim further reduced by 10%
Subtotal (net approved cost) $172,800
4. Building has 30 units so, as specified in law, net ÷144
approved cost amortized over 144 months
Subtotal (total building per month increase) $1,200
5. Building has 120 rooms (30 apartments with 4 ÷120
rooms each) so total increase divided by 120
Total (per room per month increase) $10
11. DHCR granted the MCI rent increase and I 12. Does the filing of the appeal stop the owner
don’t agree with DHCR’s decision. What can I do? from collecting the rent increase?