Landlord Must Refund $138,000 to Tenant

Tenant complained of a rent overcharge. His initial rent was $2,200 per month. Landlord claimed that it made apartment improvements costing $60,000. The DRA ruled for tenant and ordered landlord to refund $138,000, including triple damages. The DRA found that most of landlord's documentation of apartment improvements wasn't credible. The DRA disallowed an increase for claimed electrical work, Sheetrock, and floor scraping and varnishing because these were repairs. Landlord appealed and lost. Landlord claimed that it performed electrical work in the apartment kitchen. But it was undisputed that tenant performed the electrical work. In addition, DHCR's inspector found that Sheetrock wasn't installed in the apartment as landlord claimed. Landlord also claimed it paid over $20,000 to install bathroom fixtures when the claimed cost of these items was $2,850. In addition, there was a 1994 rent reduction order in effect for tenant's apartment on the base rent date. The DRA properly froze tenant's rent as of the base date based on that order.

Graham Court Owners Corp./Taylor: DHCR Adm. Rev. Docket Nos. VB410016RO, VB410017RT (1/17/08) [5-pg. doc.]