Increase Granted for Painting Done as Part of Wall Reconstruction

(Decision submitted by Robert H. Berman of the Manhattan law firm of Borah, Goldstein, Altschuler & Schwartz, P.C., attorneys for the landlord.) Tenant complained of a rent overcharge. The DRA ruled for tenant, and landlord appealed, claiming that the DRA had improperly disallowed ``1/40th'' rent increases for a number of apartment improvements made before tenant moved in. The DHCR ruled for landlord, in part. Among other things, landlord claimed a rent increase should be granted for painting. Normally, painting is considered ordinary maintenance and no rent increase would be permitted. But landlord spent $6,500 on demolition, $8,700 on preparation, and $6,500 on preparation and painting of walls. This suggested a reconstruction of walls, with painting of new walls then being required. So, in this case, a rent increase was permitted for the cost of painting.

K.E.V. Realty Co./Maibaum: DHCR Adm. Rev. Dckt. Nos. KF410036RO, KF410036RT (2/28/97) [11-page document]