Certain Costs for Related Work Included in Rent Hike for Elevator Upgrade

Landlord applied for MCI rent hikes based on elevator upgrading with related shaft work and professional fees. The DRA ruled for landlord in part but disallowed rent increases for related work. Landlord appealed and won, in part. Given the age of the pre-existing shaftway and the extent of the shaft work performed, shaft work as approved was necessary to accommodate installation of a modern elevator cab. But painting of the shaft walls was ordinary repair and maintenance work properly excluded. Demolition and rebuilding of the restaurant bathroom and doorway adjacent to the elevator shaft wasn’t necessary to accomplish the elevator installation. The cost associated with running the elevator platform also wasn’t a necessary expense to be included in the MCI increase. Landmarks Commission fees were properly excluded. But removal of the old plaster from inside the shaft, as well as scraping and painting of the steel framing reinforcing the shaft, was necessary related work, as was some plumbing work in the bathroom adjacent to the elevator shaft. Engineer fees, previously excluded by the DRA, also should be included in the MCI cost since they didn’t duplicate landlord’s architect fees, and it wasn’t unusual in an elevator installation project for an engineer to be used to determine requirements for structural elements.

228 West Broadway Tenants Association/Moskowitz: DHCR Adm. Rev. Docket Nos. EN410020RT, EO410013RO (2/24/17) [5-pg. doc.]