Labor Costs Disallowed from 1/40th Improvements

Rent-stabilized tenant complained of a rent overcharge. The DRA ruled for tenant and reduced his monthly rent from $1,400 to $1,200. The DRA allowed a rent increase for some apartment improvements, but disallowed $3,500 of claimed labor costs. Landlord appealed and lost. The principals of the landlord corporation performed the work themselves and paid no actual labor costs. So they couldn’t collect labor costs from tenant.

326 Realty Corp.: DHCR Adm. Rev. Docket No. XJ210037RO (5/12/10) [2-pg. doc.]