DHCR Limits 1/40th Rent Increase for Painting

Landlord asked the DHCR to approve a rent increase after he painted rent-controlled tenant's apartment. The DRA ruled  for landlord in part but limited the amount of the rent increase. Landlord appealed and lost. Landlord had submitted to the DRA a statement signed by tenant acknowledging that painting had never been provided as a service previously and was now being done to comply with the Housing Maintenance Code. Landlord also submitted a contract for the work with a provision for landlord to pay the contractor $13,750 in cash. Landlord asked the DRA for a 1/40th rent increase of $343.75 over tenant's current rent of $255.91.

In response, tenant claimed that landlord didn't do the scraping, priming, and second coat, furniture moving, refinishing, and cleaning listed in the contract. Tenant provided other estimates from contractors showing that the job should have cost between $2,700 and $2,940.

The DHCR noted that except for the contract stating that the work was done for all cash, there was no other proof such as invoices, receipts, or a breakdown of labor, materials, or other costs. Landlord and tenant also didn't originally discuss the total cost of painting and how that would affect tenant's rent. Given the unique facts and equities of this case, the DRA properly based the 1/40th rent increase on the cost of the painting work stated in tenant's highest estimate of $2,940. The total rent increase was $73.50 per month. 

Proto: DHCR Adm. Rev. Docket No. BV420015RO (12/18/13) [3-pg. doc.]