Structural Steel, Mailbox, and Stairway Costs Disallowed

Landlord applied for MCI rent hikes based on a number of improvements, including air conditioning, condenser, interior courtyard, elevator upgrade, intercom security system, new roof, structural steel, and related fees. The DRA granted some MCI increase but disallowed certain items. Both landlord and tenants appealed. The DHCR ruled for tenants in part, reducing the total MCI increase. The cost of architectural, engineering, and expediting fees was reduced proportionally because some of the work was related to disallowed items. Structural steel work was disallowed since it wasn't described in sufficient detail to demonstrate that all beams including footings and foundations were completely replaced. Landlord's appeal was denied. The DRA properly disallowed any MCI increase for mailboxes because landlord didn't show that they were moved from an outer vestibule to an area behind locked doors. And the DRA correctly disallowed the cost of interior stairway replacement because only a single flight of stairs was rebuilt between the ground and second floors. To qualify, all landings and risers along the entire stair length from top to bottom must be replaced.

101 West 57th Street: DHCR Adm. Rev. Docket Nos. TI410060RT, TI410066RO (10/1/10) [5-pg. doc.]