Landlord Didn't Prove Improvement Costs

Tenant complained of a rent overcharge. Landlord claimed that the apartment was rehabilitated with private and Section 8 program funds and so was subject to rent stabilization. The DRA ruled for tenant. Landlord appealed and lost. The apartment remained subject to rent stabilization even if it was also subject to the Section 8 program. Landlord claimed it had spent $54,000 on apartment improvements before tenant moved in. But landlord didn't submit any itemized cost verification. Since landlord didn't prove the cost of the claimed improvements, no rent increase could be granted.

Sumkin: DHCR Adm. Rev. Dckt. No. GK710065RO (9/23/99) [3-pg. doc.]