Engineering Fees Included in Elevator Upgrade MCI

Landlord applied for MCI rent hikes, based on an elevator upgrade. The DRA ruled for landlord in part, disallowing any increase for the cost of elevator plans. Landlord appealed and won. Landlord contracted with one company to perform the elevator upgrade but had contracted separately with an engineering firm for plans and specifications in connection with the upgrade. There was no duplication of costs between the contractor and the engineer. So landlord was entitled to included in its MCI costs the engineer's professional expenses including preparatory inspections, drawing plans, or drafting specifications.

Levin: DHCR Adm. Rev. Docket No. AS710053RO (2/21/14) [3-pg. doc.]