DHCR Adds Mobilization Costs to Approved MCI Increase

The DRA partially granted landlord's MCI rent increase application based on facade restoration, parapet replacement, new garage roofs, and architect services. The DRA disallowed lintel refurbishment costs, air conditioner sleeve restoration costs, mobilization expenses, and all garage roof costs submitted in landlord's change order. Landlord appealed and won in part. Some startup work costs and the mobilization costs should have been included with the total approved MCI cost, so the MCI rent hike was modified.  The garage roof work also qualified and was added into the total MCI cost. But the lintel refurbishment costs and air conditioner sleeve restoration costs weren't necessary work performed in connection with and directly related to pointing and waterproofing, parapet replacement, or garage roof installations and therefore were properly disallowed. 

37-07 147th Realty LLC: DHCR Adm. Rev. Docket No. CN110045RO (11/16/18) [2-pg. doc.]