Cost of General Contractor Included

Tenant complained of a rent overcharge. The DRA ruled for tenant. Landlord appealed, claiming that the DRA had improperly disallowed some of the cost of apartment improvements made before tenant moved in. The DRA had allowed the cost of a consultant to plan the apartment renovations, but had disallowed the $3,120 cost of a general contractor. Landlord argued that the general contractor was needed to supervise and coordinate the extensive apartment renovations. The DHCR ruled that this was a reasonable and necessary expense for the project and allowed landlord to include this cost when calculating the rent increase.

Major Assocs.: DHCR Adm. Rev. Dckt. No. KK410150RO (6/26/00) [4-pg. doc.]