Landlord Used Loan to Pay for Improvements

Landlord applied for MCI rent hikes based on the installation of new windows. He submitted cancelled checks for about one-third of the cost of the project. But landlord couldn't supply the DRA with proof of payment for the rest of the job because he'd taken out a loan to pay for it. The DRA granted landlord's application for the amount he'd actually spent on the windows. Landlord appealed, asking the DHCR to modify the DRA's order to include the additional cost because he'd now paid off the loan. Along with the appeal, landlord submitted copies of cancelled checks to the bank, the retail installment obligation, and a letter from the bank stating that the loan had been repaid in full. Landlord had paid back the loan in monthly installments; so, he couldn't submit the cancelled checks at the time he filed the MCI application. Landlord can collect the rest of the MCI increase once he pays for the full cost of replacing the windows.

Dinicoll: DHCR Adm. Rev. Dckt. No. FK 230049-RO (5/18/94) [3-page document]