Landlord Didn't Prove Improvement Costs

Tenant complained of a rent overcharge, claiming that her rent was about $700 higher than prior tenant's. Landlord argued that it had made apartment improvements costing $28,000. As proof, landlord submitted, to the DRA, a copy of a proposal from a contractor listing the work to be done and acknowledging payment in full. The DRA ordered an inspection of the apartment because tenant claimed that the work had been done improperly. The inspection showed that the improvements weren't as extensive as landlord had claimed. The DRA also asked landlord for copies of cancelled checks and receipts itemizing the improvement costs. Landlord didn't supply those documents, and the DRA ruled for tenant. The DRA disallowed two-thirds of the improvement costs. It found an overcharge of about $97,500, including an award to the tenant of triple damages. Landlord appealed, submitting more documentation. The DHCR upheld the DRA's ruling. The additional documentation landlord supplied partially contradicted its other documents, and was inconsistent with the DHCR inspection report. There was no way to determine what work had genuinely been done to improve the apartment, and what work constituted repairs. Also, triple damages won't be excused if landlord submits documentation for the first time on appeal.

620 East 6th Street Owners Corp.: DHCR Adm. Rev. Dckt. No. HH 410027-RO (12/19/94) [10-page document]