Apartment Was Properly Deregulated Based on Vacancy and IAI Rent Increases

Tenant complained to the DHCR in February 2019 of rent overcharge and improper deregulation of her apartment. She challenged her preferential rent, denied there was a higher legal regulated rent, and objected to individual apartment improvement (IAI) rent increases. Based on calculation of lawful rent increases over the base date rent of $993, the DRA found no overcharge, and that the unit was improperly deregulated. In December 2016, the apartment rent was lawfully increased under tenant's initial lease and the legal regulated rent was $3,102, which was above the $2,700 deregulation threshold in effect at that time.

Tenant appealed the IAI rent increase and lost. Landlord submitted documentation showing that total invoices matched the amount of $100,785 granted by the DRA. Landlord also submitted DOB records that documented the IAIs, as well as photographs. The apartment was properly deregulated after increasing the $993 base date rent by an 18 percent vacancy allowance, a 25.2 percent longevity increase, and a $1,679 IAI increase.

Phanord: DHCR Adm. Rev. Docket No. MT410007RT (12/3/24)[3-pg. document]