Construction Supervision Costs Excluded from MCI Increase

(Decision submitted by David Hershey-Webb of the Manhattan law firm of Himmelstein, McConnel, Gribben, Donoghue & Joseph, attorneys for the tenants.)

Landlord applied for MCI rent hikes based on facade and roof work. The DRA ruled for landlord in part, and included the cost of engineering plans, architectural specifications, and a sidewalk bridge in the approved costs. But the DRA denied any increase for construction supervision by an architect. Landlord appealed and lost. Landlord argued that the construction supervisor was a necessary and customary expense required by DOB and the NYC Landmarks Preservation Commission.  But landlord didn't show that construction supervision was customary for facade work. And landlord's contract for the work called for supervision of all labor and operations by the general contractor. Additional supervision by an architect was a duplicate cost that shouldn't be passed on to tenants.

Samson Management LLC: DHCR Adm. Rev. Docket No. XC430007RO (9/27/11) [2-pg. doc.]