DHCR Must Include Materials, Labor Costs in Apartment Improvement Rent Increase

Tenant complained of a rent overcharge. The DHCR allowed landlord some rent increase for apartment improvements, but found a rent overcharge. The DHCR disallowed some claimed costs because the claimed improvements were not visible to the DHCR's inspector. The DHCR ordered landlord to refund $13,000, including triple damages. Landlord appealed, claiming that the DHCR's order was unreasonable. The court ruled for landlord and sent the case back to the DHCR for reconsideration. The DHCR reduced the total overcharge finding to $8,700. Landlord appealed again and won. The DHCR had given landlord a rent increase based on the cost of labor, but not materials. The court sent the case back to the DHCR again for recalculation. Landlord had proved the cost of both labor and materials, and was entitled to a rent increase based on properly calculated costs.

Ador Realty LLC v. DHCR: NYLJ, 1/25/07, p. 24, col. 3 (Sup. Ct. Kings; Harkavy, J)