While the Trump family’s abuse of the MCI provision is egregious, it’s hardly unique, which is why tenant advocates have long argued that it must be reformed, or abolished altogether. “We see really dramatic rent increases through MCIs, and they’re full of fraud,” says Cea Weaver, the policy director of
New York Communities for Change. Landlords are allowed to raise the rent by up to 6 percent per year, depending on the scope and extent of the repairs, which can lead to hikes of hundreds of dollars. “[It’s a] one-time cost for the landlord but a permanent increase for the tenants,” Weaver explains.
The system is also easy to abuse: Increases based on MCIs are overseen by the state’s Division of Housing and Community Renewal (DHCR), which Weaver says is “horribly underfunded” and doesn’t always thoroughly vet applications. And according to
DHCR’s own fact sheet, the only proof that a landlord needs in order to get an MCI comes from the landlords and contractors themselves, which can easily be falsified.