Related Demolition Costs Included

Tenant complained of a rent overcharge. Landlord claimed that improvements had been made to tenant's apartment before she moved in. The DRA ruled for tenant. The DRA granted some rent increase for 1/40th improvements but disallowed $1,250 for demolition and Dumpster costs. Landlord appealed, arguing that the improvements would have been impossible without the removal and carting of materials. The DHCR ruled for landlord. DHCR Policy Statement 91-1 states that the cost associated with removal or demolition of items being replaced can be included in the calculation of rent increases when the removal or demolition is necessary and is performed at the time the improvements are being made. Landlord's demolition costs qualified for inclusion in calculation of the rent increase.

Katz: DHCR Adm. Rev. Dckt. No. DB410250RO (6/7/96) [4-page document]