Landlord Not Required to Seek Lowest Cost for IAIs

Tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $89, including interest. Tenant appealed and lost. The DRA had calculated the legal rent based on a vacancy increase, longevity increase, and a $505 monthly rent increase for individual apartment improvements (IAIs). Tenant disputed the $30,283 spent on IAIs, arguing that landlord didn't use a bidding process and used house workers and inflated the price. The DHCR noted that landlord wasn't required to use a bidding process or seek the lowest cost for IAIs. Landlord submitted a signed contract, contractor invoices, and cancelled checks proving its IAI cost. There was no additional overcharge. [Download PDF of decision here.]

Richards: DHCR Adm. Rev. Docket No. ES210056RT (4/24/17) [2-pg. doc.]