Compactor Inspection Cost Excluded from MCI Rent Hike

Landlord applied for MCI rent hikes based on the installation of a new garbage compactor, along with the cost of inspecting the compactor. The DRA ruled for landlord in part. The cost of the compactor qualified, but no increase was granted for the cost of inspection. Landlord appealed and lost. To qualify for an MCI rent hike, the inspection must have been required to obtain governmental approval and/or a required permit based upon work that had been determined to be an MCI. In this case, the architect's inspection report was prepared and submitted to landlord only. There also was no proof that the compactor inspection was required by law or regulations of any governmental agency. 

247 East 28th Street: DHCR Adm. Rev. Docket No. XB410040RO (4/18/13) [2-pg. doc.]