Alternate Hardship Application Denied

Landlord applied for rent increases based on alternate hardship. Landlord claimed operating expenses equaled 95 percent of rental income. The DRA ruled against landlord, finding landlord didn't meet that threshold. Landlord appealed and lost. The DRA incorrectly deemed rental income for a basement office occupied temporarily and rent-free by a tenant organization. But the DRA correctly disallowed operating expenses for unspecified fees, permit expenses, utilities, services, and noncapital repairs that weren't supported by an invoice or cancelled check. The resulting ratio of operating expenses to rental income was 77.28 percent, which was less than the required 95 percent ratio.

316 Clinton Avenue: DHCR Adm. Rev. Docket No. WA210007RO (6/4/10) [3-pg. doc.]