Checks Considered on Appeal

Tenant filed a fair market rent appeal. Landlord submitted proof of individual apartment improvements made to the apartment before the first stabilized tenant moved in. Landlord claimed that the total cost was $37,500. Landlord submitted canceled checks totaling only $27,500 and stated that other checks totaling $10,000 were misplaced during their office relocation. The DRA ruled for tenant and ordered landlord to reduce his rent. Landlord appealed and submitted for the first time the missing checks. Landlord argued that the DHCR should consider this proof, even though it wasn't submitted to the DRA. The DHCR ruled for landlord. Landlord had submitted to the DRA a copy of its letter to Chase Bank asking for copies of its misplaced checks. The bank didn't produce the checks in time for consideration by the DRA. Landlord showed a reasonable excuse for not submitting the checks earlier.

Fifth Avenue Development Co.: DHCR Adm. Rev. Dckt. No. FI410352RO (5/8/98) [3-page document]