Installation of Back-Up Electricity Generator Didn't Qualify as MCI

Landlord applied to the DHCR for MCI rent hikes based on installation of courtyards, walkways, concrete work, and side entry gates around its building. The DRA ruled for landlord in part but disallowed any increase for related costs associated with sidewalk/DOT permits, engineer drawings and architect fees, vault work, a snow melt system, work at new mezzanine levels, a generator system, entry/side door installations, entry gate transoms, and construction management.

Landlord appealed and lost. The DHCR found that the disallowed items didn't qualify for MCI increases. Among other things, installation of an electric generator as a backup to electricity supplied by a public utility, and the creation of additional storage rooms at the new mezzanine levels don't qualify for a rent increase because they're not necessary requirements for the operation, preservation, and maintenance of the structure. Installation of sidewalks similarly didn't qualify as an MCI. And landlord didn't prove that the sidewalks in question were within the property line. The architect's fees were properly disallowed since the approved MCIs were relatively commonplace installations. 

Langham Mansions LLC: DHCR Adm. Rev. Docket No. FR430037RO (8/6/21)[4-pg. document]