IAI Rent Increase Complied with Rent Stabilization Requirements

Tenant complained to the DHCR of rent overcharge in 2020. Tenant claimed that, when she moved into the unit in 2017, landlord had made improper individual apartment improvements (IAIs), without permits and using unlicensed contractors. The DRA ruled against tenant, who appealed and lost. The DHCR pointed out that there was no requirement in 2016 that a landlord obtain permits for electrical and plumbing work in order to qualify for an IAI rent increase, or to use licensed contractors. Landlord submitted proof of the IAIs to the DRA, which included contracts, invoices, and cancelled checks for work costing $29,700 and was entitled to a 1/40th rent increase at the time the work was completed. There was no rent overcharge. 

Chorney: DHCR Adm. Rev. Docket No. MT210028RT (12/23/24)[3-pg. document]