DHCR Inspection Showed None of the Claimed IAIs Were Done

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $138,204, including triple damages and interest. Landlord appealed and lost. Among other things, landlord claimed that it spent $52,800 on individual apartment improvements (IAIs) before tenant moved in. Given the dispute between what work landlord and tenant claimed was done in the apartment, the DHCR conducted an inspection. The DHCR's inspector found that none of the claimed IAIs were done in the apartment. The inspector found no new Sheetrock installation; no new floor installation; no new kitchen cabinets, countertops, or appliances; no bathroom renovations; no new doors or carpentry; and no new electrical wiring. So the DRA reasonably disallowed all IAIs costs. 

3489 Broadway Owner LLC: DHCR Adm. Rev. Docket No. GM410018RO (4/9/19) [5-pg. doc.]