Consultant's Fee Not Included

Landlord applied for MCI rent hikes based on elevator upgrading. The DRA ruled for landlord, but disallowed any increase for related consulting fees. Landlord appealed and lost. Although certain engineering or architectural expenses may qualify as part of the cost of an MCI, they must be necessary and customary. Since a contractor did the elevator upgrading, and his contract required him to get all the required permits, certificates, and approvals for the work, it was unfair to charge tenants to pay for unnecessary supervisory and administrative expenses.

Samson Mgmt. Corp.: DHCR Adm. Rev. Dckt. No. OA610029RO (5/10/00) [2-pg. doc.]