DOB Filing Fees Deducted from Elevator Upgrade Costs for MCI Rent Hike

Landlord applied to the DHCR for MCI rent hikes based on an elevator upgrade and security camera installation. The DRA ruled for landlord in part but excluded from the increase the cost of DOB filing fees paid in connection with the elevator work. Landlord appealed and lost. Landlord claimed that the amount of the filing fees already had been excluded when it filed its MCI application and that the DRA therefore excluded the filing fees a second time. The DHCR disagreed. Although the stated elevator work cost of $747,455 didn't include the amount paid for DOB fees, in computing the proposed rent increase, the total amount paid to the elevator contractor, with the DOB filing fees, was included in the "claimed cost," and the DOB filing fees totalling $8,094 were then deducted from the total. The result is that the approved MCI amount fot the elevator upgrading shown in the DRA's order was exactly the same as the claimed cost for the installation as stated in the application. So, the filing fees weren't deducted twice.

315 E. 72nd Street Owners, Inc.: DHCR Adm. Rev. Docket No. HQ410014RO (9/30/21)[2-pg. document]