Labor Cost Adjustment Correctly Calculated

The DRA increased the rents of rent-controlled tenants in a building complex by a $25 labor cost adjustment. Tenants appealed, claiming that the DRA miscalculated the increase. The DHCR ruled against tenants. Normal weekly wages for a one-year period are used to calculate landlord's annual labor costs, not wages for a three-month period. The three-month period used by the DHCR in its calculations is only for purposes of confirming the figures submitted. And although there was a ten-day strike by building employees, tenants didn't show that this reduced landlord's costs.

London Terrace Tenants' Assn.: DHCR Adm. Rev. Dckt. Nos. JF420151RT-JF420157RT (9/30/99) [2-pg. doc.]