Landlord Proved IAI Costs

Rent-stabilized tenants complained of rent overcharge in 2017. They questioned a rent increase for individual apartment improvements (IAIs) charged by landlord. The DRA ruled against tenants, who appealed and lost. Landlord submitted sufficient proof of the IAIs. At the time the work took place, licensure of the contractor by the Dept. of State wasn't required for the DHCR to recognize the work done. The absence of itemization by price for the renovations didn't matter since landlord proved a complete gut renovation of the apartment. None of the work described would be considered ordinary maintenance and repairs. Landlord submitted a receipt for cash payment to the contractor in the form of the initialed paid-in-full notation on the contractor's invoice. Proof of the contractor's cost for materials wasn't essential. And an application to, and approval by, the DOB wasn't required for a vacancy-improvement rental increase. Tenants also admitted that the apartment had been renovated before they moved in.

Cunningham/Aygun: DHCR Adm. Rev. Docket No. JP110020RT (1/18/22)[3-pg. document]