Work Performed by Building Employees

September 30, 2001

LVT Number: 15316

Tenant filed a fair market rent appeal, challenging the first rent-stabilized rent for his apartment. The DRA ruled for tenant and reduced his rent. Landlord appealed, claiming that the DRA disallowed certain labor costs for apartment improvements that should have been included in the calculation of tenant's fair market rent. The DHCR ruled against landlord. Landlord paid $3,800 in labor costs to its own building employees for work done in the regular course of their employment.

Tenant filed a fair market rent appeal, challenging the first rent-stabilized rent for his apartment. The DRA ruled for tenant and reduced his rent. Landlord appealed, claiming that the DRA disallowed certain labor costs for apartment improvements that should have been included in the calculation of tenant's fair market rent. The DHCR ruled against landlord. Landlord paid $3,800 in labor costs to its own building employees for work done in the regular course of their employment. This amount didn't count as separate or additional labor costs for which landlord could collect a 1/40th rent increase.

Posner/Towan Realty Co. LLC: DHCR Adm. Rev. Dckt. Nos. OA410059RT and OA410026RO (8/24/01) [7-pg. doc.].

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