DHCR Disallowed Some Costs Landlord Claimed Were Part of Garage Roof MCI

Landlord applied for MCI rent hikes based on garage roof improvements. The DRA ruled for landlord in part but disallowed some of landlord's claimed costs. Landlord appealed and lost. Landlord argued that painting of the underground garage interior, as well as snaking drains, new sewer trap doors, and Dumpster pads weren't repairs that should have been disallowed. But the DHCR found that painting was cosmetic in nature and didn't qualify as an MCI. The other items weren't needed or directly related to the installation of the qualifying garage roof, but was maintenance and repair. The DRA also properly disallowed other costs claimed to be related to the garage roof as being repairs and unrelated to the MCI. This included costs for interior ramps and front entrance work, removal of a light pole located in the driveway, disconnection and reconnection of electrical power, and the running of wires and conduits. The DHCR also disallowed $20,000 attributed to DOB filing fees although landlord maintained that these fees weren't included in the paid contractor fees for the MCI work. 

Argentina Leasing LP & Brazil Leasing LP: DHCR Adm. Rev. Docket No. FS110002RO (1/12/18) [4-pg. doc.]