Some Related Landscaping Costs Added to MCI Increase for Garage Roof

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 the claimed related costs. Landlord appealed and won, in part. To qualify, related costs must be incurred in connection with and directly related to the MCI. The DRA properly excluded the costs claimed for new sidewalks since landlord didn't show that they were within the property line. Costs claimed for a skid steer bucket and water tap weren't related to the subject building. But costs for new planter soil areas and a new planter wall should have been included in eligible landscaping costs. Painting costs were properly disallowed. Landlord claimed that disallowed plumbing and drainage installation costs were needed to mitigate floods in connection with the new garage roof. But these costs were properly disallowed as the costs weren't related to the garage roof and/or were done for maintenance and repair. The DRA also properly disallowed costs for a "phase disconnect," security cameras, and rubber speed bump. The speed bump was installed at a different building, unrelated to the MCI. The related costs that the DHCR added back in increased the total per-room per-month MCI increase from $6.99 to $7.52. 

Peru, Columbia, Ceylon, & Singapore Leasing, LP: DHCR Adm. Rev. Docket No. HR110021RO (8/28/20) [4-pg. doc.]