Landlord Didn't Have to Make Improvements at Lowest Possible Cost

(Decision submitted by Joshua G. Losardo of the Manhattan law firm of Belkin Burden Wenig & Goldman, LLP, who represented the landlord.)

Tenant complained of a rent overcharge. Landlord claimed that tenant wasn't rent stabilized. Tenant's initial rent was $2,025 per month, and landlord said that tenant therefore was deregulated. Landlord submitted documents showing that it made apartment improvements costing $25,500 before tenant moved into the apartment. The DRA ruled for tenant and disallowed any rent increase for landlord's claimed apartment improvements. The DRA found that tenant's legal rent was $1,493 and ordered landlord to refund $56,000, including triple damages. Landlord appealed. The DHCR ruled for landlord in part. Landlord submitted an invoice and cancelled checks to document the claimed apartment improvements. Landlord wasn't required to obtain the lowest cost for the work. Tenant's claim that two checks applied to other apartments wasn't supported by another proof. The fact that two checks were written several months after the work was done also didn't prove the work wasn't done in connection with tenant's apartment. The DRA also incorrectly found that landlord had duplicate costs. However, landlord failed to submit a breakdown of costs for each claimed improvement item. The costs claimed simply for "new kitchen" and "new bathroom" weren't documented enough. So the DHCR approved costs totalling $16,000 and allowed a rent increase of $400 for the improvements. The total overcharge, with triple damages, was $31,000.

Extell 516 East 13th Street, LLC: DHCR Adm. Rev. Docket No. VD410049RO (9/27/07) [9-pg. doc.]