DRA Miscalculated Commercial Share of MCI Cost

Landlord applied for MCI rent hikes based on a new entrance door and facade restoration. The DRA ruled for landlord in part, disallowing the amount of the facade work cost that was greater than the amount of the original contract. Landlord appealed, claiming that the commercial share of the MCI cost was incorrectly calculated. Landlord also claimed that it had documented its additional costs. The DHCR ruled for landlord. Landlord had submitted a cost breakdown that included the additional work, along with statements from its architect and contractor stating that additional inspections made them realize that more work was needed than originally agreed upon. The DHCR also corrected a mathematical error by the DRA, reducing the commercial share of the MCI cost that had been deducted from the granted rent increase.

1711 Morris Avenue: DHCR Adm. Rev. Docket No. WF610023RO (5/29/13) [4-pg. doc.]