Landlord Didn't Prove Claimed Individual Apartment Improvements

Rent-stabilized tenant complained to the DHCR of rent overcharge. The DRA ruled for tenant and the DHCR denied landlord's PAR. Landlord then filed an Article 78 court appeal, claiming that the DHCR's decision was arbitrary and unreasonable. The court ruled against landlord, who appealed further. The appeals court also ruled against landlord. Landlord claimed that the rent charged to tenant was justified by individual apartment improvements (IAIs) made to the unit. But the DHCR's finding that landlord failed to establish its claimed improvements with adequate documentation had a rational basis, and was not arbitrary or capricious. 

Matter of PACST 1244-46, 1356, LLC v. DHCR: App. No. 2021-04457, Index No. 524336/20, 2023 NY Slip Op 04383 (App. Div. 2 Dept.; 8/23/23; Nelson, JP, Maltese, Wooten, Wan, JJ)