Landlord Gets Labor Cost Adjustment

Landlord applied for rent increases for rent-controlled tenants based on labor cost adjustments. The DRA ruled for landlord, and tenants appealed. They claimed that they had an appeal pending at DHCR based on the granting of landlord's application to restore rents after a rent cut. They argued that landlord shouldn't get a labor cost adjustment until the DHCR decided their appeal. Tenants also claimed there were false statements on landlord's application for labor cost adjustments as to the number of building employees and how many were union members. The DHCR ruled against tenants. Landlord showed that it had 11 building service employees and produced payroll records demonstrating increased payroll expenses. Tenants' pending appeal of the restored rents also didn't bar landlord from collecting the labor cost adjustments.

19 E. 80th St. Tenants Association: DHCR Adm. Rev. Dckt. No. GL 420228 RT (4/28/95) [6-page document]