Gap Between Upgrade of First and Second Elevators Didn't Bar MCI Increase

Landlord applied for MCI rent hikes based on two elevator installations. The DRA ruled for landlord in part. The cost for one of the elevators was excluded because the DRA found the work was done on a piecemeal basis. The DRA also excluded the cost of consulting fees. Landlord appealed and won, in part. The consulting fees were properly excluded because the elevator work was relatively commonplace and didn’t require a consultant’s expertise. But the DHCR approved the MCI costs for the second elevator. Generally, an installation is considered piecemeal when the work has been broken up into separate and distinct phases with no explanation. Landlord explained that the gap in time between the completion of the work on the first elevator and the start of the work on the second elevator was due to simultaneous lobby renovation work that needed to be completed before starting the second elevator upgrade. Also, MCI increases can be granted for work performed separately on individual elevators.

108 Owners Corp./BHM Realty LDT: DHCR Adm. Rev. Docket No. ZA430058RO (11/5/15) [2-pg. doc.]