Apartment Was Vacancy Deregulated Based on Cost of IAIs

Tenant complained to the DHCR of rent overcharge in 2016. The DRA ruled against tenant, finding that the apartment was no longer subject to rent stabilization. Tenant appealed and lost. Tenant claimed that the unit was illegally deregulated based on inflated individual apartment improvements (IAIs). The DHCR disagreed, finding that landlord sufficiently documented IAIs costing $75,000 through an itemized invoice, cancelled check, and affidavits from its contractor and building super. The DHCR also had inspected the work during the processing of tenant's complaint. Landlord also registered the apartment in a timely manner as high-rent vacancy deregulated after performing the IAIs. Landlord wasn't required to find the cheapest way of performing the work or obtaining its materials. The apartment was legitimately deregulated. 

McKenna: DHCR Adm. Rev. Docket No. IS410069RK (8/16/21)[5-pg. document]