Labor Costs Excluded

Landlord applied for MCI rent hikes based on several improvement projects in the building. Along with the application, landlord submitted bills for $8,600 in labor for work performed by its employees. The DRA denied landlord's application for the labor costs. Landlord appealed, claiming that the labor costs should have been included. Landlord loses. Labor costs are excluded from MCI rent increases when the work is done by landlord's employees. Although a separate company did the work in this case, some of the workers were also officers in landlord's company.

Roundhill Management Co: DHCR Adm. Rev. Dckt. No. BE 430349-RO (5/16/94) [4-page document]