Landlord Doesn't Qualify for Alternative Hardship Increase

Landlord applied for alternative hardship rent increases. The DRA ruled against landlord. Landlord appealed and lost. To qualify for alternative hardship, landlord must show that the standard rent guideline adjustments aren't enough for the property to maintain annual operating expenses by an amount equal to at least 5 percent of such annual income. The DRA had correctly adjusted the gross income information submitted by landlord to include increases from rental income from long-term vacancies, interest, garage, and laundry room income. The DRA also disallowed some expenses landlord claimed for insufficient proof. The ratio of operating expenses to income was 91.89 percent, which was below the 95 percent threshold required to qualify for an alternative hardship rent increase.

Hampton Leasing Co.: DHCR Admin. Rev. Dckt. No. EC230050RO (9/5/02) [2-pg. doc.]