Design Work Costs for Complicated Elevator Upgrade Approved

Landlord applied for MCI rent hikes for elevator upgrading. The DRA ruled for landlord but disallowed any increase for the cost of design work, including plans and specifications, for the elevator upgrade. Landlord appealed and won. It is established DHCR policy that professional fees for the preparation of plans and specifications may be included as an approved MCI cost in cases where the approved MCI work involves a complexity beyond the normal scope of work. Here, two elevator systems, containing a total of four elevators were extensively modernized. The work performed included the replacement of the hoist motors, replacement of hoist and governor ropes, complete rewiring of both elevator systems and replacement of all electronic components, conversion from DC to AC power, complete replacement of the passenger cabs, and refurbishment of the freight cabs. So it was appropriate to use a professional consultant for design work.

Samson Management LLC: DHCR Adm. Rev. Docket No. ZD430066RO (5/15/17) [2-pg. doc.]