Terrace Work Included in MCI Roof Installation

October 17, 2014

LVT Number: #25800

Landlord applied for MCI rent hikes based on various facade work improvements. The DRA ruled for landlord in part, granting MCI increases for a new roof, parapets, terraces, and roof drains. The DRA disallowed any increase for the cost of certain change orders, architect's fees, and roof fans. Landlord appealed and won, in part. Tenants appealed and lost. The DHCR added some increase based on landlord's change orders but found that the architectural fees were properly disallowed as unnecessary for the work involved.

Landlord applied for MCI rent hikes based on various facade work improvements. The DRA ruled for landlord in part, granting MCI increases for a new roof, parapets, terraces, and roof drains. The DRA disallowed any increase for the cost of certain change orders, architect's fees, and roof fans. Landlord appealed and won, in part. Tenants appealed and lost. The DHCR added some increase based on landlord's change orders but found that the architectural fees were properly disallowed as unnecessary for the work involved. And the roof fans and related wiring weren't necessary items directly related to the roof installation. Tenants argued that the terrace work should be excluded from the MCI because it didn't benefit all tenants. But the terraces formed part of the overall roof system and resurfacing them in connection with the main roof installation directly or indirectly benefitted all tenants.

225 East 70th Street: DHCR Adm. Rev. Docket Nos. YD410025RO, YD410033RT (8/11/14) [3-pg. doc.]

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