Improvements Made While Apartment Owner-Occupied

Tenant complained of a rent overcharge. The DRA ruled for tenant and directed a refund of over $34,000. Landlord appealed, claiming that the DRA should've allowed a much greater rent increase for 1/40th apartment improvements made during prior tenancy. Tenant appealed, claiming no 1/40th increases should be granted. Landlord argued that the reasonable value of prior tenant's own labor should be allowed, that the absence of specific notation on some of the checks and invoices submitted for the apartment work should be excused because prior tenant believed she was working on her own unregulated cooperative apartment and that prior tenant was an officer of landlord corporation, making her an owner-occupant rather than tenant during that time. The DHCR ruled against landlord and for tenant. The rent stabilization code doesn't provide for rent increases based on improvements made during owner occupancy. So landlord can't collect a rent increase for apartment improvements made during that time. The 1/40th rent increase that had been granted was revoked.

East NoHo Corp./Emerling: DHCR Adm. Rev. Dckt. Nos. GI410073RO, GI420274RT (12/3/96) [7-page document]