Landlord Married to Contractor Who Did Apartment Improvements

Tenant complained of a rent overcharge. Landlord claimed that it made individual apartment improvements to tenant's apartment that cost $23,000. The DRA ruled for tenant and disallowed any increase for the apartment improvements. Landlord appealed and lost. Landlord paid checks totalling $23,000 directly to his wife, who was president of the construction company that did the apartment improvement work. When there is a common interest between a landlord and its contractor, the DHCR can request additional information to determine whether claimed costs are legitimate. Landlord didn't respond to the DRA's requests for more itemized information about the claimed improvements; therefore, the DRA properly disallowed any increase for the improvements.

154 West Realty Corp.: DHCR Adm. Rev. Docket No. VH410008RO (1/17/08) [5-pg. doc.]