Backflow Prevention Device Qualifies as Major Capital Improvement

Landlord applied for MCI rent hikes based on the installation of a CCTV system, entrance doors, and elevator upgrading. The DRA ruled for landlord but disallowed costs associated with a roof exhaust fan and related waterproofing and consulting costs, lobby renovation and elevator consultation services, and a backflow preventer along with related consulting services. Landlord appealed and won, in part. Current DHCR policy permits MCI increases for backflow prevention devices. So, landlord's costs for the device installation and related design services were added to the approved MCI costs. But construction supervision performed by an engineer were still excluded because a licensed contractor had warranted all work and materials to be free from defects. [Download PDF of decision here.]

SP 41 Park LLC: DHCR Adm. Rev. Docket No. ZD410059RO (6/29/17) [3-pg. doc.]