Demolition and Painting Were Part of Extensive Renovation

Tenant complained of a rent overcharge. Landlord submitted proof of apartment improvements costing $28,750. The DRA ruled for landlord in part, using $23,000 of submitted costs as the basis for a ``1/40th'' rent increase. Landlord appealed, claiming that other costs should also have been included. The DHCR ruled for landlord. The DRA had excluded costs for demolition and painting. But given the extensive renovation which included demolition, moving of interior walls, and electrical and plumbing work, demolition and painting expenses should have been included in calculating the lawful rent.

Silgo 22nd Assocs.: DHCR Adm. Rev. Dckt. No. DL410145RO (5/8/97) [2-page document]