Demolition Costs Included

Tenant complained of a rent overcharge. The DRA ruled for tenant, and landlord appealed, claiming that the DRA erred in disallowing the cost of apartment improvements included in tenant's rent. The DHCR ruled for landlord. While landlord never provided a breakdown of the costs of the improvements, it did submit a signed contract agreement for the work backed up by cancelled checks. And although the work included demolition---generally considered a ''repair''---it was done in connection with the kitchen and bathroom improvements. So it qualified as part of the new equipment costs.

Park Towers South Co.: DHCR Adm. Rev. Dckt. No. KB410005RP (2/28/96) [8-page document]