Landlord Didn't Prove Debris Removal Was Properly Included in IAI Rent Increase

Tenant asked the DHCR in 2014 for an Administrative Determination of the legal regulated rent for his apartment. In response, landlord acknowledged that tenant was rent stabilized and that it had refunded $6,632 to tenant for rent overcharges. In 2017, the DRA sent landlord a request for additional information (RFAI), seeking rent history records including leases dating back to 2010 and rent rolls for the apartment from 2009 to the present. The DRA also asked landlord for a detailed description of individual apartment improvements (IAIs) performed, a breakdown of the labor cost involved, and itemization of materials used.

In 2019, the DRA ruled that the apartment's base date rent was $1,536. The DRA also found that there were only 15 years between apartment vacancies and landlord therefore had incorrectly calculated a 0.6 percent longevity increase for a 25-year period. Landlord also incorrectly included rubbish removal as part of its IAI cost.

Landlord appealed and lost. The "removal of debris" included in claimed IAI costs was properly disallowed because submitted invoices gave no indication that this work was related to the apartment or done in connection with any apartment improvement or necessary for the IAI installation. 

338-340 East 22nd LLC: DHCR Adm. Rev. Docket No. HQ410017RO (9/23/22)[3-pg. document]