MCI Increase Granted for New Garage Roof that Doubled as Courtyard

Landlord applied for MCI rent hikes based on the installation of a new garage roof that functioned as a courtyard. The DRA ruled for landlord but disallowed the costs of the garage walls and interior, foundation walls, slabs, beams, columns, permits, engineering, and miscellaneous costs. Landlord and tenant both appealed and lost. Tenants objected to an MCI increase for the garage roof. But the garage was attached to, and formed an extension of, the building. Therefore, garage roof replacement qualified for an MCI rent increase. Costs allowed here for the new garage roof included those for waterproofing, parapet walls, railings, and pavers. It didn't matter if prior neglect required the installation. Landlord appealed the disallowance of engineer fees. But they were properly disallowed since they related to the garage interior. Landlord also sought an MCI increase for demolition costs but didn't break down the costs or describe the demo work in sufficient detail to qualify for an MCI increase. 

Mazurek/Klein: DHCR Adm. Rev. Docket Nos. CO130040RO, CO130037RT (7/30/19) [3-pg. doc.]