Apartment Was Deregulated in 2011 Based on IAI Rent Increase

Tenant complained in 2016 of improper apartment deregulation and rent overcharge. The DRA ruled against tenant, who appealed and lost. The DRA found that landlord performed individual apartment improvements (IAIs) costing $44,500 in 2011 while the unit was vacant and that the apartment then became vacancy deregulated before the next tenant moved in. Tenant claimed fraudulent deregulation. But a mere increase in rent alone was insufficient to sustain a claim of a fraudulent scheme to deregulate. And landlord fully documented its IAI costs. There was no basis for tenant's claim that landlord increased the rent for MCI work. Any claimed pre-base date MCI irregularities weren't subject to review by the DHCR. And the apartment was vacancy deregulated two years before the MCI increases in question were granted. 

Gosset: DHCR Adm. Rev. Docket No. JN410012RT (8/9/21)[7-pg. document]