Labor Charges Can't Be Included

LVT Number: 11800

Tenant complained of a rent overcharge. The DRA ruled for tenant and reduced her first monthly rent from $1,000 to $670. Landlord appealed, claiming that the DRA had improperly disallowed labor costs that should have been included in the calculation of a ``1/40th'' rent increase for the apartment. The DHCR ruled against landlord. Landlord didn't itemize its labor charges as required by DHCR policy. And much of the labor costs were actually for work related to painting, plastering, and restoring floors, which are ordinary repairs or maintenance.

Tenant complained of a rent overcharge. The DRA ruled for tenant and reduced her first monthly rent from $1,000 to $670. Landlord appealed, claiming that the DRA had improperly disallowed labor costs that should have been included in the calculation of a ``1/40th'' rent increase for the apartment. The DHCR ruled against landlord. Landlord didn't itemize its labor charges as required by DHCR policy. And much of the labor costs were actually for work related to painting, plastering, and restoring floors, which are ordinary repairs or maintenance.

Olmedo/Festucca Realty #1 Co.: DHCR Adm. Rev. Dckt. Nos. KG510106RT, KG510055RO (4/14/97) [6-page document]

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