Facade Work Not Performed as Unified Project with Roof Replacement

Landlord applied for MCI rent hikes based on roof and building facade work. The DRA ruled for landlord in part, but disallowed $780,000 of claimed costs. The DRA found that the work had been performed in two separate phases and that the first phase was completed more than two years before landlord filed its MCI application. Landlord appealed and lost. Landlord didn't prove any intention to do the exterior wall work and the later roof replacement as a single unified project. The initial contract described only work related to the exterior walls. All of that work had been completed by the time landlord's contractor prepared a contract change order to add the roof replacement. It didn't matter that the two phases of work were done under one, amended contract instead of two separate contracts.

530 Park Avenue: DHCR Adm. Rev. Docket No. XI430013RO (12/5/12) [3-pg. doc.]