Landlord Had No Acceptable Proof of Individual Apartment Improvements

The DHCR’s Tenant Protection Unit (TPU) filed a rent overcharge complaint after landlord responded insufficiently to TPU’s audit of individual apartment improvement (IAI) rent increases for tenant’s apartment. The DRA ruled for tenant and ordered landlord to refund $101,000, including triple damages. Landlord appealed and lost. Landlord claimed it spent $26,000 for labor in connection with IAIs. But the only proof submitted was a sworn statement signed after-the-fact. This wasn’t substantial proof of the labor cost. In addition, much of landlord’s proof of IAI costs was for work done on three apartments with insufficient proof of which work was performed in each apartment. And, since no IAI rent increase was proved, the DRA properly found the overcharge to be willful.

Sha Realty, LLC: DHCR Adm. Rev. Docket No. EP210025RO (1/25/17) [4-pg. doc.]