Landlord Didn't Prove Cash Payment

Facts: Landlord applied for MCI rent hikes for a number of improvements. The DRA disallowed the claimed cost of $3,850 for pointing and waterproofing and $4,100 for plumbing work because landlord didn't supply enough proof of cash payments for this work. Landlord appealed. To prove the $3,850 cash payment, landlord had submitted two contractor's letters. One letter described the work and was stamped ``PAID,'' with the words "in full---9/18/94'' handwritten in. The second contractor's letter, dated a year later, described the work and the cost, and certified that the contractor got a $3,850 cash payment. Landlord also submitted an affidavit from the contractor describing the work performed and the cost. For the $4,100 payment, landlord submitted a contractor's letter stamped "PAID,'' with a handwritten notation acknowledging the $4,100 cash payment, signed by the corporation's president, who was also the landlord.DHCR: Landlord can't get the rent increase. The two contractors' letters for the $3,850 payment don't qualify as invoice receipts marked paid in full. The first letter didn't indicate who stamped ``PAID'' or wrote "in full.'' The second letter wasn't written at the same time the work was completed. The affidavit didn't indicate the method and dates of payment, or that the installation was paid in full. Also, landlord didn't prove the $4,100 cash payment. Given landlord's relationship with the contracting company, landlord's written notation that he paid $4,100 in cash to the company wasn't enough.

Falco: DHCR Adm. Rev. Dckt. No. BF 430191-RO (6/25/93) [3-page document]