No Rent Increase for Kitchen Tiles or Molding

Rent-stabilized tenant complained of a rent overcharge. Tenant moved into the apartment in 2007 at a monthly rent of $1,800. The DRA ruled for tenant and reduced her rent to $1,357. The DRA disallowed any rent increase for kitchen tiles, apartment molding, and painting and plastering that landlord claimed as individual apartment improvements made to the apartment before tenant moved in. The DRA also froze tenant's rent based on landlord's failure to register the apartment in 2007. Landlord was ordered to refund $17,570, including triple damages. Landlord appealed, claiming that the DRA incorrectly disallowed the cost of 1/40th improvements.
The DHCR ruled against landlord. The contractor's invoice landlord submitted stated that the contractor "put tiles in the kitchen wall." But DHCR inspection showed that there were no kitchen wall tiles, only kitchen floor tiles. Landlord claimed that this was just an error in the contract. But landlord didn't advise the DRA that it was floor tiles rather than wall tiles that were installed, and the contractor's breakdown simply described the work as "remove old and install new tiles in kitchen." Landlord also argued that the DRA improperly broadened the scope of the molding job. Landlord claimed that only bathroom molding was replaced. But the contractor's invoice states that all molding was removed and replaced. So the DRA properly disallowed $2,400 in costs for the kitchen tiles and molding. The DRA also properly disallowed any increase for painting and plastering. Although landlord claimed that it was required due to the extensive apartment renovations, painting and plastering were maintenance work that didn't qualify as 1/40th improvements.

Canton Owners, LLC: DHCR Adm. Rev. Docket No. WH210010RO (12/1/08) [4-pg. doc.]