DHCR Disallowed Duplicate, Unexplained IAI Costs

LVT Number: #31939

Rent-stabilized tenant complained of rent overcharge in 2018. The DRA ruled for tenant and directed landlord to refund $42,108, including triple damages and interest. Landlord appealed and lost. Landlord argued that the DRA incorrectly disallowed some of the costs landlord submitted to support its claim for an individual apartment improvement (IAI) rent increase. The law in effect at the time of tenant's complaint permitted a 1/160th rent increase for proven IAI costs. Landlord submitted adequate proof that it paid $30,798 for IAIs.

Rent-stabilized tenant complained of rent overcharge in 2018. The DRA ruled for tenant and directed landlord to refund $42,108, including triple damages and interest. Landlord appealed and lost. Landlord argued that the DRA incorrectly disallowed some of the costs landlord submitted to support its claim for an individual apartment improvement (IAI) rent increase. The law in effect at the time of tenant's complaint permitted a 1/160th rent increase for proven IAI costs. Landlord submitted adequate proof that it paid $30,798 for IAIs. Otherwise, the DRA correctly found that some additional claimed costs were duplicative. Landlord had submitted proof of payment to two separate contractors for work done, and failed to respond to a Request for Additional Information (RFAI) sent by the DRA. So, because the work set forth in the second contract was largely duplicative of or similar to the other work, and because landlord failed to clarify or itemize the second contractor's work, the DRA correctly disallowed any additional claimed IAI costs.  

Gilzeis Realty Company LLC: DHCR Adm. Rev. Docket No. JW410017RO (3/8/22)[3-pg. document]

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