Signed Contract Proves Improvement Costs

(Decision submitted by Peter A. Schwartz of the Manhattan law firm of Fromme Fromme & Schwartz, attorneys for the landlord.) Tenant complained of a rent overcharge. Landlord claimed it was entitled to a rent increase of 1/40th of the cost of the improvements it had made to the apartment. The DRA asked landlord for proof of the improvement costs. Landlord submitted a signed contract for the work, but needed more time to get the cancelled checks from its former managing agent. The DRA disallowed a rent hike for improvements, and found that tenant had been overcharged. Landlord appealed, and submitted the cancelled checks. The DHCR ruled for landlord. Landlord had submitted a signed contract for the improvement work, and had a good reason for not submitting the cancelled checks. So, the DHCR can accept landlord's proof for the first time on appeal. This proof showed that landlord was entitled to a rent hike of $400.27 per month, which negated the overcharge finding.

Rowe Realty: DHCR Adm. Rev. Dckt. No. FD 410057-RO (11/9/94) [3-page document]