Landlord Gets Chance to Prove IAIs Resulted in Vacancy Deregulation

Tenant asked the DHCR to determine the regulatory status of her apartment. Tenant claimed that she was rent stabilized, even though her initial monthly rent of $2,600 per month was above the $2,500 vacancy deregulation threshold when tenant moved in in October 2013. Landlord claimed that the tenant’s initial rent was properly deregulated. The DRA ruled for tenant, finding that the legal rent when tenant moved in was $2,319.71, representing a 16.25 percent vacancy increase over the prior rent of $1,995.45.

Landlord appealed and the case was reopened. Landlord had notified the DRA that it had difficulty obtaining evidence of individual apartment improvements (IAIs) from its contractor. With its PAR, landlord submitted a sworn statement from the contractor that landlord had paid $15,692 for completing work at the apartment. This statement didn’t describe the work that was set forth in the work proposal, which described kitchen installations, plumbing replacements, rewiring, and painting. The DHCR sent the case back to the DRA so that landlord could submit a more detailed statement from the contractor regarding the exact work that was completed, along with cancelled checks and any applicable work permits. Tenant would also be permitted to submit additional proof concerning representations made to her at the time she rented the apartment. [Download PDF of decision here.]

476 Properties Corp.: DHCR Adm. Rev. Docket No. DW210009RO (8/11/16) [5-pg. doc.]