Labor Costs Excluded

September 30, 2003

LVT Number: 16852

Landlord applied for MCI rent hikes. The DRA ruled for landlord in part. The DRA granted rent hikes for a new roof and lot line windows but denied any rent hike for labor costs. Landlord appealed and lost. There was a relationship between landlord and its contractor. Landlord was acting as its own contractor and paying its own employees as part of their regular compensation. So the labor costs were properly excluded from the MCI.

Landlord applied for MCI rent hikes. The DRA ruled for landlord in part. The DRA granted rent hikes for a new roof and lot line windows but denied any rent hike for labor costs. Landlord appealed and lost. There was a relationship between landlord and its contractor. Landlord was acting as its own contractor and paying its own employees as part of their regular compensation. So the labor costs were properly excluded from the MCI.

Sid John Property Assocs. LLP: DHCR Adm. Rev. Dckt. No. RE610046RO (8/5/03) [3-pg. doc.]

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