Landlord Documented Cost of IAIs

Rent-stabilized tenant complained of rent overcharge in March 2017. The DRA ruled against tenant, who appealed and lost. Landlord had claimed that prior tenant lived in the apartment for 40 years. When prior tenant moved out, landlord did a gut renovation of the apartment before tenant moved in. Landlord showed that it spent $76,852 on individual apartment improvements (IAIs) and was therefore allowed to collect a 1/60th increase of $1,281 per month. Landlord also was entitled to collect a 20 percent vacancy increase and an 18.6 percent longevity increase. Landlord also was entitled a $7.36 rent increase for MCIs approved by the DHCR. These increases brought the monthly legal rent up to $2,539, which was what landlord charged. Landlord documented the IAI costs as required by DHCR Policy Statement 90-10, in effect at the time of the complaint. There was no support for tenant's claim that landlord's cost documentation was fraudulent. Landlord had submitted cancelled checks, a contract, and photographs documenting the IAI costs. 

Lopez: DHCR Adm. Rev. Docket No. IS210070RK (10/23/20) [4-pg. doc.]