DHCR Added Previously Disallowed IAI Costs to Legal Rent

Tenant complained in 2016 that her apartment had been improperly deregulated and that she was overcharged. The DRA ruled for tenant, finding that tenant's legal regulated vacancy rent was $2,526 and that the apartment was rent stabilized. The rent was frozen at this amount due to landlord's failure to properly file annual registrations for 2017 and 2018. The rent also was reduced and frozen due to a service reduction order issued in 2018. The DRA ordered landlord to refund $10,416, including triple damages. Since a so-ordered housing court settlement agreement acknowledged that tenant owed $34,500 in rent arrears, the overcharge award could be offset against the back rent owed. Landlord appealed. The DRA had granted some rent increase to landlord for individual apartment improvements (IAIs) done before tenant moved in. But landlord claimed that the DRA incorrectly disallowed some of its IAI costs. The DHCR ruled against landlord, who then filed an Article 78 court appeal. The case was sent back to the DHCR for further consideration. The DHCR then conducted a second inspection of the IAIs and now included in approved IAIs the $5,843 cost of previously disallowed door trim installation, windows, refrigerator, and stove. This reduced the total overcharge refund to $1,654.

NY Sandy 8 Brooklyn II: DHCR Adm. Rev. Docket No. K0110001RP (7/12/22)[7-pg. document]