Filing Fees and Administrative Work Excluded from MCI Costs

Landlord applied for MCI rent hikes based on elevator upgrading. The DRA ruled for landlord in part but disallowed costs for municipal permits and miscellaneous work. Landlord appealed and lost. Landlord argued that it was improper for the DRA to request a breakdown of the project costs since the work was done under a lump-sum contract. Landlord also claimed that the excluded costs qualified as part of the MCI. But it is long-standing DHCR policy to exclude government filing costs from MCI increases. The miscellaneous work, consisting of parts management, supervision, survey, and scheduling, was ordinary administrative work performed by the contractor and not eligible as MCI costs. 

97-32 57th Avenue: DHCR Adm. Rev. Docket No. ZA110012RO (1/15/15) [2-pg. doc.]