Look up any NYC building’s records →
What an MCI Is
MCI stands for Major Capital Improvement. When a landlord makes a building-wide upgrade to a rent-stabilized or rent-controlled building — a new roof, boiler, windows, elevator, or electrical rewiring — they can apply to the state's Division of Housing and Community Renewal (DHCR) for a rent increase to help recover the cost. That increase is spread across all the regulated units in the building.
An MCI must be a substantial, building-wide improvement that benefits all tenants. Cosmetic work, ordinary repairs, and routine maintenance do not qualify. Replacing a boiler qualifies; repainting a hallway does not.
The 2% Cap — A Major Change Since 2019
This is the part most tenants don't know. Before 2019, MCI increases could raise rent-stabilized rents by up to 6% (and rent-controlled by up to 15%). The Housing Stability and Tenant Protection Act of 2019 dramatically tightened that: MCI rent increases are now capped at 2% per year.
If the approved MCI increase is more than 2% of your rent, it gets phased in over multiple years at 2% per year until the full amount is reached. It is also added permanently to your base rent — though under the 2019 law, MCI increases must be removed 30 years after they take effect.
When a Landlord CAN'T Get an MCI Increase
There are important limits:
- 35% rule: A landlord cannot get an MCI increase if 35% or fewer of the building's units are rent-regulated.
- Rent reduction order: If you have a rent reduction order in effect (for reduced services), there can be no MCI increase on your apartment until it's resolved.
- Improper work or documentation: If the work wasn't actually done, wasn't completed properly, or the costs weren't properly documented, the increase can be challenged.
How to Fight an MCI Increase
When a landlord applies for an MCI increase, every rent-regulated tenant in the building receives a notice of filing from DHCR. You have the right to respond in writing — this is called an "answer" — before DHCR rules.
Step 1: Read the notice carefully. It will describe the claimed improvement and the proposed increase.
Step 2: Investigate the work. Was the improvement actually made? Was it completed? Look around your building. Talk to neighbors. Document what you find.
Step 3: File your answer with DHCR. You can raise objections about whether the work was done, how it was performed, how it was paid for (any government grant or insurance payment must be deducted from the recoverable cost), and any other errors.
Step 4: Organize with other tenants. A coordinated response from multiple tenants carries more weight and lets you share the investigative work.
Step 5: Request your rent history. Get your DHCR rent history to verify the math and ensure the increase is calculated correctly.
Tenants have successfully gotten MCI increases reduced or denied — in some documented cases, by six figures across a building.
What to Watch For
MCI applications can take DHCR over a year to process if disputed. That means if the increase is eventually approved, it may be applied retroactively — so budget for that possibility while a case is pending.
Check your building's full record on Weverit — a building's violation and complaint history can be relevant if you're challenging whether claimed improvements were actually completed.
Frequently Asked Questions
How much can an MCI raise my rent in NYC? Since the 2019 rent law, MCI increases are capped at 2% of your rent per year. Before 2019, they could raise rent-stabilized rents by up to 6% (and rent-controlled by up to 15%); the Housing Stability and Tenant Protection Act dramatically tightened that to 2% annually. If the total approved MCI amount exceeds 2% of your rent, it doesn't hit all at once — it's phased in over multiple years at 2% per year until the full amount is reached. The increase is added permanently to your base rent, although under the 2019 law MCI increases must be removed 30 years after they take effect. An MCI has to be a substantial, building-wide improvement — a new roof, boiler, windows, elevator, or electrical rewiring — not cosmetic work or routine maintenance.
Do I have to pay an MCI increase forever? No. Under the 2019 rent law, MCI rent increases must be removed from the rent 30 years after they take effect. That said, tenants and advocates note this can be hard to enforce in practice, so it's important to keep your own records of when an MCI increase started so you can hold the landlord to the 30-year limit. In the meantime the increase is added permanently to your base rent and phased in at no more than 2% per year. If you ever suspect the math is wrong, or that the increase should already have come off, request your DHCR rent history to verify how the increase was calculated and applied over time.
Can I fight an MCI rent increase? Yes. When a landlord applies for an MCI increase, every rent-regulated tenant in the building receives a notice of filing from DHCR, and you have the right to respond in writing — this is called an "answer" — before DHCR rules. Read the notice carefully, then investigate whether the improvement was actually made and completed: look around your building, talk to neighbors, and document what you find. In your answer you can object to whether the work was done, how it was performed, and how it was paid for — any government grant or insurance payment must be deducted from the recoverable cost. Organizing with other tenants strengthens the challenge and shares the investigative work. Tenants have gotten increases reduced or denied, in some cases by six figures across a building.
Does an MCI increase apply to market-rate apartments? No. MCI increases apply only to rent-stabilized and rent-controlled units — they're a mechanism within the rent-regulation system, so market-rate apartments aren't affected. There's also a related limit that protects tenants in largely-deregulated buildings: a landlord cannot get an MCI increase at all if 35% or fewer of the building's units are rent-regulated. And even in a regulated building, if you have a rent reduction order in effect for reduced services, no MCI increase can be applied to your apartment until that's resolved. Because MCIs only touch regulated rents, confirming whether your unit is rent-stabilized is a useful first step — it determines whether an MCI can legally reach your rent in the first place.
Related NYC Housing Guides
- What Is an IAI? The Apartment Upgrade That Can Raise Your Rent
- How to Check If Your Apartment Is Rent-Stabilized in 2026
- What Is the Warranty of Habitability?
Sources: NY Housing Stability and Tenant Protection Act of 2019; NYS HCR/DHCR MCI program; NYC Rent Guidelines Board FAQ; Met Council on Housing. This article is for informational purposes only and does not constitute legal advice.
