Some Related Costs Added to MCI Rent Hike for Garage Roof Replacement

Landlord applied for MCI rent hikes based on the installation of a garage roof and related costs. The DRA ruled for landlord in part but disallowed some of landlord's claimed related costs. Landlord appealed and won, in part.  The DRA had allowed related costs for a surface parking lot, landscaping, driveways, walkways above the garage, and interior renovation of the garage. These were necessary work performed in connection with and directly related to the installation of the qualifying garage roof. The MCI required removal of the surface material above the roof. The DHCR found that claimed work for the costs of new planter soil areas and new planter walls and garden-related planter walls should've been included in eligible landscaping costs. Additional landscape costs deducted by the DHCR were cosmetic and completed for repair and maintenance purposes. These weren't MCI eligible. Disallowed painting costs disputed by landlord were cosmetic and considered routine maintenance and/or repair. Plumbing and drainage installations claimed by landlord were properly disllowed as they weren't directly related to or necessary for replacement of the garage roof. But some lighting and electrical work directly related to the garage roof replacement should've been included in the MCI increase. The monthly, per-room MCI rent hike was increased from $7.79 to $8.81. 

Panama, United States, Sydney, & Brisbane Leasing, LP: DHCR Adm. Rev. Docket No. HR110013RO (8/28/20) [4-pg. doc.]