Contractor Mobilization Costs Included in Approved MCI Costs

Landlord applied for MCI rent hikes based on the installation of new cooling towers, oil to gas conversion, and tank abandonment. The DRA ruled for landlord in part, disallowing $100,000 in mobilization costs. Landlord and tenant both appealed. The DHCR ruled against tenant, who argued that the MCIs lowered landlord’s utility costs. The DHCR ruled for landlord since the DHCR generally allows as part of the MCI cost a contractor’s mobilization costs that were necessary and directly related to the completing an MCI.  [Download decision here.]

Hampton Mgmt. Company, LLC/Sheppard: DHCR Adm. Rev. Docket Nos. BV610050RO, BU610062RT (7/29/16) [2-pg. doc.]