Architect/Engineer Fees Disallowed from MCI Cost for Gas Repiping

The DHCR's Rent Administrator granted landlord's application for an MCI rent hike based on gas repiping at its building. Tenants appealed, claiming that there was insufficient proof supporting landlord's application. The DHCR ruled for tenants in part although the agency denied a number of tenants' claims. The DHCR found that landlord properly substantiated the claimed costs of the gas repiping installation, submitted sufficient detail about the gas repiping project's scope of work, gave no indication that sales tax may have been included in claimed MCI costs, provided proof of the start and end dates for the project, and showed that piping enclosure work was performed in connection with and was directly related to the gas repiping MCI. However, the DHCR agreed with tenants that there was no cost for a professional engineer/architect included in the claimed MCI amount. Landlord had denied that $4,000 in engineer or architect costs were included in the claimed MCI contract price but didn't state whether such costs were paid separately from the contract price. The scope of the project also didn't warrant inclusion of such costs in the MCI increase. So the DHCR reduced the granted MCI increase by $0.15 per room per month.

Various Tenants of 1307 to 1315 Merriam Ave: DHCR Adm. Rev. Docket No. GP610008RT (8/11/23)[4-pg. document]