Landlord Didn't Submit Cost Breakdown

Tenant complained of a rent overcharge. The DRA ruled for tenant, finding a willful overcharge. Landlord appealed, claiming that there was no willful overcharge and that the DRA should have allowed a rent increase for the $25,000 spent on apartment improvements before tenant moved in. The DHCR ruled for landlord in part. The DHCR didn't allow any rent increase for the apartment improvements, because landlord submitted only proof of a total cost of $88,000 for some building work and improvements to three apartments. But there was no cost breakdown as to what portion of this amount applied to tenant's apartment. But under DHCR Policy Statement 89-2, there should be no finding of a willful overcharge based solely on insufficient documentation of apartment improvement costs. So the DHCR revoked the portion of the DRA's order imposing triple damages.

Tara: DHCR Adm. Rev. Dckt. No. GA410299RO (5/3/00) [3-pg. doc.]