DHCR Decision Granting IAI Rent Increases Upheld by Appeals Court

Tenant complained to the DHCR of rent overcharge. The DHCR ruled against tenant, finding that landlord proved its costs for claimed individual apartment improvements (IAIs) made to the unit before tenant moved in. Tenant then filed an Article 78 court appeal, which the court transferred to the appeals court. The DHCR's ruling was not arbitrary or capricious. Contrary to tenant's claim, DHCR Operational Bulletin 2016-1, concerning IAIs, didn't apply retroactively to IAIs performed years before that Op Bulletin became effective. Landlord's proof supporting the rent increase, based on a complete apartment renovation before tenant moved in, complied with prior DHCR Policy Statement 90-10. The DHCR weighed the evidence as to landlord's claimed costs, and the court in an Article 78 proceeding must not substitute its own view for that of the DHCR.

Garner v. DHCR: 138 N.Y.S.3d 315, 2021 NY Slip Op 00795 (App. Div. 1 Dept.; 2/9/21; Manzanet-Daniels, JP, Gische, Gonzalez, Shulman, JJ)