Cost of Work Inflated

June 30, 2003

LVT Number: 16652

Landlord applied for MCI rent hikes based on the installation of new windows. The DRA ruled for landlord in part. The DRA disallowed $28,700 of the claimed cost of $46,500. Landlord appealed and lost. Landlord didn't submit sufficient proof of the cost from one of its two contractors. And the cost of the improvement was greatly inflated. Landlord claimed that its first contractor disappeared without finishing the window installation. Landlord ended up paying $10,000 more than the original estimated cost of the work and paid the first contractor for much work that was left undone.

Landlord applied for MCI rent hikes based on the installation of new windows. The DRA ruled for landlord in part. The DRA disallowed $28,700 of the claimed cost of $46,500. Landlord appealed and lost. Landlord didn't submit sufficient proof of the cost from one of its two contractors. And the cost of the improvement was greatly inflated. Landlord claimed that its first contractor disappeared without finishing the window installation. Landlord ended up paying $10,000 more than the original estimated cost of the work and paid the first contractor for much work that was left undone. The inflated cost of the work couldn't be passed on to tenants.

S.M. Realty Processing Corp.: DHCR Adm. Rev. Dckt. No. QC210051RO (5/28/03) [4-pg. doc.]

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