DHCR Proceeding Reopened to Permit Landlord's Submission of Additional IAI Proof

Tenant asked the DHCR to determine his rent regulation status. He claimed that he was rent stabilized although he had a deregulated lease. The DRA ruled for tenant, finding that landlord didn't submit requested rent history information to the DRA.

Landlord appealed and won. Landlord pointed out that the DRA's order stated that the  legal regulated rent would be determined in a separate rent overcharge proceeding filed by tenant. The DHCR noted that the lack of a deregulation notice or proper registration at the time of the tenant's initial apartment rental didn't rule out high-rent vacancy deregulation. The deregulation notice wasn't a pre-condition to vacancy deregulation. And landlord had told the DRA that it performed individual apartment improvements (IAIs) costing $41,000 before tenant moved in. Landlord submitted cancelled checks to the DRA and now sought to submit additional proof, including a contractor's statement detailing the work done and invoices documenting additional payments to Home Depot. The DRA hadn't advised landlord of the proof needed for IAIs. The DHCR revoked the administrative determination finding that the apartment was rent stabilized and referred any remaining questions to be considered in the pending rent overcharge proceeding. 

JM Hoyt LLC: DHCR Adm. Rev. Docket No. GO210001RO (2/7/19) [4-pg. doc.]