Cost of Additional Security Services Disallowed

Facts: Landlord applied for MCI rent hikes for an 89-building complex based on rewiring. Landlord had obtained an advisory opinion from the DHCR approving a two-phase installation. In phase one, landlord installed trunk lines and risers leading from the exteriors of the buildings into individual apartments. In phase two, electrical wiring was installed in the apartments. The DRA ruled for landlord but disallowed the related cost of additional security hired during the installations. Landlord appealed. DHCR: Landlord loses. Landlord's written agreement with its contractor stated that the contractor would be responsible for the safety of persons and property during the installation. Landlord also maintained a 24-hour security force for the complex anyway. So additional security services claimed as MCI-related costs by landlord simply duplicated other costs and were properly disallowed.

Stuyvesant Town: DHCR Admin. Rev. Dckt. No. NC410105RO (12/3/02) [14-pg. doc.]