$9,000 Labor Charges Includable in MCI Rent Hike

Rent-stabilized tenant complained of a rent overcharge. Landlord charged tenant a rent increase for individual apartment improvements costing over $12,000. The amount included $9,000 for labor. The DRA found no overcharge and dismissed the complaint. Tenant appealed, claiming that the claimed renovation costs were excessive. In particular, tenant noted that the labor costs were paid to the building super in cash. The DHCR ruled against tenant. Landlord submitted sufficient proof that it paid $9,000 to the super for the renovation work. It didn't matter whether the super was an independent contractor or landlord's employee, whether he was insured and licensed, whether he had a bank account or paid taxes, whether he did work for other tenants in the building, or whether landlord obtained building permits for the work done.

3109 Roberts Avenue: DHCR Adm. Rev. Docket No. XC610021RT (4/17/09) [3-pg. doc.]