Project Manager Fee Included in MCI Increase

May 31, 2007

LVT Number: 19672

Landlord applied for MCI rent hikes based on rewiring. Landlord's costs included a consulting engineer's fees. The DRA ruled for landlord and increased tenants' rents. Tenants appealed, claiming that the engineer's fees should be disallowed. The DHCR ruled against tenants. The engineer served as a project manager and the rewiring work was extensive, covering 224 apartments. So landlord's professional expenses were directly related to the MCI and qualified for part of the rent increase.

Landlord applied for MCI rent hikes based on rewiring. Landlord's costs included a consulting engineer's fees. The DRA ruled for landlord and increased tenants' rents. Tenants appealed, claiming that the engineer's fees should be disallowed. The DHCR ruled against tenants. The engineer served as a project manager and the rewiring work was extensive, covering 224 apartments. So landlord's professional expenses were directly related to the MCI and qualified for part of the rent increase.

219-225 West 86th Street: DHCR Adm. Rev. Docket No. SI430085RT (1/31/07) [3-pg. doc.]

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