Did IAIs Raise Rent Above Deregulation Threshold?

Vacancy-deregulated tenant sued landlord for rent overcharge and improper deregulation. The court ruled for tenant without a trial. Landlord appealed, and the case was reopened for further fact-finding. There were genuine questions of fact as to whether landlord's claimed expenditures for individual apartment improvements (IAIs) performed before tenant moved in were sufficient to bring the legal rent above the high-rent vacancy deregulation threshold. In response to tenant's motion for summary judgment, landlord's managing agent submitted a sworn statement claiming that three apartments of roughly the same size were renovated at the same time at a total cost of $231,510, excluding appliances. The managing agent identified the contractor who did the work and provided copies of checks paid and applications filed with DOB. Tenant also acknowledged that some work was done in the apartment.

Ruggerino v. Prince Holdings 2012, LLC: Index No. 156640/16, 2019 NY Slip Op 02264 (App. Div. 1 Dept.; 3/26/19; Friedman, JP, Gische, Kapnick, Gesmer, Kern, JJ)