Landlord Charged Less Than Fair Market Rent to First Rent-Stabilized Tenant

Rent-stabilized tenant filed a fair market rent appeal to challenge the initial stabilized rent. The DRA ruled against tenant, finding that the initial $1,000 rent was less than the $1,290 fair market rent. The fair market rent was computed by adding the applicable Special Guideline to the $441 rent-controlled rent as well as an increase for individual apartment improvements (IAIs). Tenant appealed and lost. Tenant disputed the $17,650 IAI cost approved by the DRA. Although the contractor's affidavit submitted by landlord didn't designate apartment 4D, the contractor said he performed the work in the apartment formerly occupied by the named rent-controlled tenant. The cancelled checks were contemporaneous with the dates that the work was done. 

Jorge: DHCR Adm. Rev. Docket No. EX410040RT (9/25/17) [3-pg. doc.]