Labor Costs Disallowed

May 31, 2003

LVT Number: 16595

Tenant complained of a rent overcharge. The DRA ruled for tenant and found an overcharge in the amount of $3,800. Landlord appealed, claiming that the DRA improperly disallowed labor costs provided by a subcontractor for $13,500. The DHCR ruled against landlord. The subcontractor was landlord's wife, and landlord didn't substantiate the labor costs. DHCR Policy Statement 90-10 states that when there is a relationship between landlord and its contractor, the DHCR may request additional proof of cost and payment.

Tenant complained of a rent overcharge. The DRA ruled for tenant and found an overcharge in the amount of $3,800. Landlord appealed, claiming that the DRA improperly disallowed labor costs provided by a subcontractor for $13,500. The DHCR ruled against landlord. The subcontractor was landlord's wife, and landlord didn't substantiate the labor costs. DHCR Policy Statement 90-10 states that when there is a relationship between landlord and its contractor, the DHCR may request additional proof of cost and payment.

Burak: DHCR Adm. Rev. Dckt. No. QL210041RO (4/4/03) [3-pg. doc.]

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