Contractor Who Performed IAIs Shared Identity of Interest with Landlord

Rent-stabilized tenant complained to the DHCR of rent overcharge. The DRA ruled against tenant, who appealed and got the case reopened. Tenant questioned individual apartment improvements (IAIs) that landlord claimed were performed before tenant moved in, and alleged that landlord and its contractor shared an identity of interest. Tenant also claimed that landlord's IAI costs of $116,500 didn't add up and that some of the claimed costs were "grossly inflated."

Tenant correctly pointed out that there appeared to be an identity of interest between landlord and the contractor who performed the IAIs. Both landlord and its contractor had been registered with the DHCR as the owner of the building, and each entity had signed at least one lease for tenant's apartment as the owner. These entities shared the same addresses. DOB records show that the same individual was the owner of the contracting company and principal of the landlord entity. So, the case was sent back to the DRA for consideration of evidence concerning an identity of interest between landlord and the contractor, as well as other issues raised by tenant. 

Levy: DHCR Adm. Rev. Docket No. JW210040RT (1/18/22)[5-pg. document]