Estimated Labor Costs Disallowed

Tenant complained of a rent overcharge. The DRA ruled for tenant and disallowed some of the costs that landlord claimed for an individual apartment improvement (1/40th) rent increase. Landlord appealed, claiming that he should be paid for his labor since he was a general contractor and did all the carpentry, plumbing, and electrical work in tenant's apartment. The DHCR ruled against landlord. Landlord didn't document his labor costs to the DRA. He simply submitted a statement indicating how much the carpentry union would have paid per hour and estimating how many hours he worked per day. These estimated labor costs were properly disallowed in the calculation of the 1/40th rent increase for apartment improvements.

McDonnell Co./Workman: DHCR Adm. Rev. Dckt. Nos. KJ410005RO, KJ410030RT (1/8/98) [3-page document]