Rent Hike Permitted for New Tiles

Rent-stabilized tenant complained of a rent overcharge. The DRA ruled for tenant, reducing her monthly rent from $1,100 to $1,006 and ordering a refund of $1,834. The DRA calculated tenant's legal rent to include a rent increase of $248 for individual apartment improvements that landlord had made before tenant moved in. Tenant appealed. The DHCR reopened the case and reconsidered questions concerning tiles installed in the apartment. The DRA allowed costs of $1,683 for 430 tiles. Tenant's legal rent was reduced to $932, and landlord was ordered to refund $3,625. Landlord then appealed, claiming that the DRA didn't give landlord credit for $5,000 paid to its contractor for labor costs in connection with the tile installation. The DHCR ruled for landlord. Landlord was entitled to the labor cost. The contractor submitted a sworn statement that this was paid largely in cash. Therefore, tenant's legal rent was $1,116, and the total overcharge was $915.

Cantos: DHCR Adm. Rev. Docket No. WG210010RO (9/4/08) [3-pg. doc.]