Landlord Properly Calculated a 1/40th Rent Increase for IAIs

Tenant complained to the DHCR of rent overcharge. The DRA ruled against tenant after finding that the apartment had been vacancy-deregulated in 2009. Tenant appealed and lost. Landlord proved the deregulation through copies of the last rent-stabilized lease, proof of individual apartment improvements (IAIs) made in 2009, a subsequent unregulated lease with a vacancy deregulation rider, and collection of lawful vacancy, longevity, and IAI rent increases supporting a vacancy rent of $2,012.39, which was above the $2,000 deregulation threshold in effect at that time. Tenant didn't object to the IAI costs but argued that the DRA should have calculated a 1/160th rent increase for the work done. But tenant was incorrect. Since there were fewer than 35 apartments in the building, landlord was entitled to collect a 1/40th increase under RSC Section 2522.4(a). 

Steppacher: DHCR Adm. Rev. Docket No. KV410006RT (11/22/22)[4-pg. document]