Cost of Preparing Location for CCTV Equipment Disallowed

Landlord applied for MCI rent hikes based on the installation of a new television security monitoring system. The DRA ruled for landlord in part, but disallowed the costs associated with installing outlets, light fixtures, and a light switch in the storage room where the security equipment was to be located. Landlord appealed and lost. Landlord claimed that the disallowed electrical costs were necessary for the security system’s operation and therefore should have been approved. The DRA reconsidered landlord’s claim and again ruled against landlord. Landlord filed a new PAR. The DHCR again ruled against landlord. Although the DHCR has considered CCTV-related installations such as mounting hardware and the coaxial wiring between equipment as necessary work related to a qualifying MCI, here the installation of new lights, switches, and outlets added to prepare the location where the DVR and monitor from the CCTV security system are to be located is not other necessary work directly related to an MCI. It is instead ordinary maintenance and repairs. The DRA correctly denied any MCI increase for these electrical services.

Arsale Realty Co., LLC: DHCR Adm. Rev. Docket No. CR630033RO (12/31/15) [2-pg. doc.]