DHCR Disallowed Rent Increase for IAIs After Inspection

Rent-stabilized tenant complained of rent overcharge. The DHCR ruled for tenant and awarded triple damages. Landlord then filed an Article 78 court appeal. The court ruled against landlord, who appealed and lost. The DHCR's decision had a rational basis and wasn't arbitrary or capricious. Landlord claimed that a rent increase was based on individual apartment improvements (IAIs) done by prior landlord and that the DHCR's inspection was made too late to make any determination about the IAIs. However, although the DHCR's inspection took place three years after the IAIs were allegedly completed, the DHCR's assessment that the defects seen in the apartment were inconsistent with the claimed IAIs was reasonable under the circumstances of the case. Landlord also failed to rebut the presumption that the overcharge was willful, so triple damages also were reasonable. 

Bronx Boynton Avenue LLC v. DHCR: 2018 NY Slip Op 01287, 2018 WL 1054685 (App. Div. 1 Dept.; 2/27/18; Andrias, JP, Gesmer, Kern, Singh, Moulton, JJ)