Labor Costs Included in Increase for New Roof

Landlord applied for MCI rent hikes based on exterior restoration and a new roof installation. The DRA ruled for landlord in part. The DRA disallowed all labor costs for the exterior work because landlord had a relationship with the contractor who did the work. Landlord appealed, pointing out that it disclosed the relationship, that the contractor hired independent workers who were neither employees of landlord nor of the contractor, and that landlord issued a 1099 tax form to each of these workers. The DHCR ruled for landlord in part. Part of the claimed labor costs were for roof repair done in 2000, two years before the actual new roof replacement. So the DHCR disallowed that portion of the rent hike relating to older roof repair work, but allowed the labor costs relating to the MCI for the new roof replacement.

500 W. 170th St.: DHCR Adm. Rev. Dckt. No. RF430065RO (9/23/03) [4-pg. doc.]