Estimates for Other Contracts Don't Prove Cost of Work

Tenant complained of a rent overcharge. The DHCR ruled for tenant and disallowed certain 1/40th improvement costs in calculating the legal rent. While the contractor's invoice stated that 17 electrical outlets had been installed in tenant's apartment, an inspection showed there were only 13. So the entire cost of the electrical work was disallowed. Landlord appealed. The court sent the case back to the DHCR to allow landlord to submit further proof of the work done. Landlord could not find the electrician that did the work, but submitted estimates for the same work prepared by other electrical contractors. The DHCR ruled against landlord and rejected landlord's proof. One of the estimates was based on today's prices, not prices in effect at the time the work was done. And the other estimate was prepared by a contractor who never saw tenant's apartment.

Heller: DHCR Adm. Rev. Dckt. No. SF410013RP (10/18/04) [4-pg. doc.]