Costs for Site Safety Manager Included in MCI Rent Hike

Landlord applied for MCI rent hikes based on pointing and facade work, engineering-pointing, and installation of an oil tank. The DRA ruled for landlord in part but disallowed any increase for landlord's installation of a temporary oil tank, site safety and mobilization/filing, and permits/site protection and safety costs. Landlord appealed and won, in part. DHCR policy precludes any MCI increase for a temporary fuel oil tank installed before the permanent tank that qualified as an MCI. But the cost of a site safety manager was required by DOB regulations and Section 3310.5 of the 2008 NYC Building Code, and therefore qualified for an MCI increase, along with partial costs for site safety plans. The contractor's mobilization costs, directly related to accomplishing the MCI, were generally accepted as an expense to be included in MCIs and therefore were allowed on appeal. 

Kenwood Estates LL/Rosen: DHCR Adm. Rev. Docket Nos. BX410024RO, BX410026RT (8/8/18) [3-pg. doc.]