MCI Rent Hike Granted for Engineering Work

The DRA granted landlord's application for MCI rent hikes based on the installation of a central air conditioning system but disallowed the cost of engineering fees. Landlord and tenants both appealed. Tenants claimed that they should be reimbursed for the cost of installing individual air conditioners during the time that the central air conditioning was inoperative. Landlord sought the disallowed engineering costs. The DHCR ruled against tenants, finding no allowance under the Rent Stabilization Code for reimbursement of tenants' personal expenses. But the DHCR ruled for landlord. Given the complexity of the installation, the engineer's preparation of drawings, specifications, and bid documents were a necessary part of installing the central air conditioning system. The DHCR added the costs for this work into the MCI increase calculation.

145 East 16th Street: DHCR Adm. Rev. Docket Nos. YF410033RT, YG410035RO (3/6/13) [3-pg. doc.]