Cornice Replacement Costs Were Related to Facade Restoration MCI

The DRA granted landlord’s application for MCI rent hikes based on the installation of a new roof, facade restoration, and engineer fees, but denied any increase for bulkhead parapet repairs, cornice wood deck replacement, mobilization, the removal and replacement of the cornice, window opening restoration, cornice support, wood support repair, general conditions, DOB filing fees, and construction administration. Landlord and tenants both appealed.

The DHCR ruled against tenants who had argued that the useful life of the replaced roof hadn't expired. The DHCR ruled for landlord in part. Repair of the bulkhead parapet and window opening restoration weren’t directly related to the MCI roof replacement and facade restoration, and were properly disallowed. General conditions weren’t an allowable expense. However, the cornice and related work were necessary work performed in connection with and directly related to the facade restoration. These costs, as well as the mobilization costs including the setting up of the sidewalk shed and bridge, were allowable costs related to the MCI.

Contor ASC LLC/78 ASC LLC/Malkenson: DHCR Adm. Rev. Docket No. ZA430010RO, YL430040RT (12/9/16) [3-pg. doc.]