Labor Cost for Former Employee Included

Landlord applied for MCI rent hikes based on the installation of a new roof. The DRA ruled for landlord, but disallowed some of the costs of the improvement. Landlord appealed and won. The DRA had incorrectly disallowed labor costs because the contractor was landlord's former employee. Landlord had disclosed this prior relationship, and it created no bar to the MCI rent increase.

Melendez: DHCR Admin. Rev. Dckt. No. QC430014RO (4/25/02) [3-pg. doc.]