No MCI Rent Hike for Labor by Landlord's Employees

Landlord applied for MCI rent hikes based on a number of improvements, including new roof installation, vestibule doors, entrance doors, and parapets. The DRA ruled for landlord but disallowed labor costs for work done by landlord. Landlord appealed and lost. It is DHCR policy that if landlord acts as his own general contractor and his employees perform MCI installation as part of their regular compensation, the labor cost can't be recouped through an MCI rent hike. Courts have upheld the DHCR's position. Although requested, landlord failed to submit documentation related to the claimed labor costs. So the DHCR couldn't determine whether landlord's employees were working on the MCI as part of their regular compensation, because there was no proof of the number of hours, wages, and times that work was performed. Landlord's estimates can't substitute for proved labor costs. So the DRA properly disallowed landlord's labor costs from the MCI rent hikes.

314 East 82nd Street: DHCR Adm. Rev. Docket No. SK430062RO (6/5/08) [3-pg. doc.]