Claimed Apartment Improvements Were Only Repairs

Tenant complained of a rent overcharge. The DRA ruled for tenant and ordered landlord to refund $51,000, including triple damages and interest. Landlord appealed, claiming that the DRA incorrectly disallowed the cost of certain individual apartment improvements in calculating the legal rent. The DHCR ruled against landlord. Prior tenant's rent was $995. Landlord charged tenant $3,000 per month. Landlord claimed that after adding a vacancy allowance, long-term vacancy surcharge, and $692 for 1/40th improvements, the legal rent was over $2,000 per month and therefore deregulated. But the DRA correctly allowed a 1/40th increase of $326 per month, which made the legal rent $1,674. The DRA allowed the costs of appliances, removal and installation of kitchen cabinets, kitchen floor tiles, new windows, and rewiring. But the DRA properly disallowed the costs of a bathroom faucet, toilet, vanity/sink, and doors to the kitchen and bathroom, which the DHCR's inspector reported weren't installed. The DRA also disallowed sanding of floors, painting the radiator, removal of mirrors, and removal of damaged bathroom tiles, because these items were deemed to be routine maintenance and repairs.

170 East 77th: DHCR Adm. Rev. Docket No. UL410013RO (1/9/08) [9-pg. doc.]