Insufficient Proof of Apartment Improvements

Rent-stabilized tenant complained of a rent overcharge. Landlord claimed that there was no overcharge and that prior landlord made 1/40th apartment improvements before tenant moved in. The DRA disallowed any increase for the improvements and ruled for tenant. The DRA also found that the overcharge was willful and imposed triple damages.
Landlord appealed and lost. Landlord bought the building after tenant moved into the apartment. In response to tenant's complaint, landlord sought documents from prior landlord and received copies of a canceled check and an invoice, each for $22,015. The invoice stated that it was for work done on 25 apartments and the roof of the building. The invoice also listed 15 items costing $14,860 done in tenant's apartment, while no more than six items were listed for any other apartment. Tenant's apartment was one of four apartment for which an aggregate cost only was listed. Eight apartments had prices for each item. Twelve apartments had only one item listed. The DRA asked landlord to submit item-by-item prices for the apartment, but landlord was unable to get further information from prior landlord. The DRA properly disallowed the entire amount claimed for apartment improvements. Landlord's proof of costs was insufficient. And triple damages also were proper. Landlord bought the building six months after tenant moved in. The registered rent for the prior tenant was $487. Landlord should have questioned at that time why rent had increased by 215 percent, and either obtained documentation or reduced tenant's rent.

Prana Bf Partners LP: DHCR Adm. Rev. Docket No. WB410034RO (12/1/08) [4-pg. doc.]