Labor Costs Included

Landlord applied for MCI rent hikes based on the installation of a sprinkler system and related work and a roof/parapet. The DRA ruled for landlord in part, denying any rent hike for labor costs because there was a relationship between landlord and its contractor. Landlord appealed. Landlord had gotten a proposal from another, independent contractor but was able to do the work for a lower cost using its own services. Landlord was a qualified contractor. The DHCR ruled for landlord. Although landlord had a relationship with the contractor, it proved its labor costs. Landlord's costs were necessary and reasonable and could be included in the MCI increase.

Frank & Walter Eberhart, LP: DHCR Adm. Rev. Dckt. No. RC430012RO (6/17/03) [4-pg. doc.]