No MCI Rent Hike for Engineering Consulting Fees

Landlord applied for MCI rent hikes based on the installation of new central air conditioning equipment. The DRA ruled for landlord, but disallowed costs associated with a consulting engineer. Landlord appealed and lost. DHCR policy, now formalized in DHCR Policy Statement 2017-1, provides that, in order for professional services to be included as an MCI cost, the services must be both necessary and customary to the MCI installation. Landlord didn't show that its installation involved a complexity beyond the normal scope of work for a commonplace central air conditioning installation. Although landlord pointed out some contrary prior DHCR rulings on this issue, those decisions were issued before the DHCR established its policy on professional service costs.

Estate of Lillian Goldman & The Lillian Goldman Family LLC: DHCR Adm. Rev. Docket No. DR410039RO (7/11/18) [2-pg. doc.]