No Proof Landlord Paid for Apartment Improvements in Cash

Tenant complained of a rent overcharge. Landlord claimed that it spent $14,700 to renovate the apartment's kitchen before tenant moved in. The DRA ruled for tenant and disallowed any rent increase for apartment improvements based on insufficient proof of landlord's claim. Landlord appealed, claiming it paid for the work in cash. The DHCR ruled against landlord. There was a handwritten notation on the contractor's invoice that the bill was paid in cash but it wasn't signed by any named agent of the contracting company to verify actual acceptance of cash payment. Tenant also claimed that many of the claimed apartment improvement items weren't completed. So the DRA correctly found that there was insufficient proof of apartment improvements and disallowed any rent increase for them.

Balaj/Lunal Realty LLC: DHCR Adm. Rev. Docket No. VE910028RO (9/26/07) [6-pg. doc.]