Increase Granted for Engineer Consulting Fees

Landlord applied for MCI rent hikes based on elevator upgrading. The DRA ruled for landlord. Tenants appealed, claiming that the DRA arbitrarily approved engineering consultant fees claimed by landlord as part of the cost of the elevator upgrade. The DHCR ruled against tenants. The DHCR approves certain engineering or architectural expenses that are directly related to an MCI. Preparatory inspections, along with the cost of drawing plans and specifications for a particular installation or expenses for professional services, are necessary and customary. Here, landlord's engineering consultant made preparatory inspections for the elevator project, designed the plans and specifications for the elevator modernization, prepared and distributed the bid package to prospective contractors, and supervised or monitored the elevator installation to ensure conformity with the specs and the current Elevator Codes and Building Code. All this was necessary and customary for the completion of the elevator upgrade and was properly included in approved cost of the MCI.

67-00 192nd Street: DHCR Adm. Rev. Docket No. UC110047RT (5/15/09) [7-pg. doc.]