Landlord Proved MCI Cost But Not Consent to Rent Hike

Tenant complained of a rent overcharge. Landlord claimed that it made apartment improvements before tenant moved in and was entitled to add 1/40th of the cost as a rent increase. The DRA ruled for tenant and ordered landlord to refund $22,000. This included triple damages for willful overcharge. Landlord appealed. Landlord had submitted a contract proving that he spent $19,000 on individual apartment improvements while prior tenant lived in the apartment. Landlord also submitted a sworn statement from prior tenant, who was landlord's brother. The brother stated that he had orally agreed to the improvements.
The DHCR ruled for landlord in part. To qualify for a 1/40th rent increase, there must be tenant consent for improvements made while a tenant is in occupancy. And that consent must be in writing. Landlord didn't get prior tenant's written consent before making the improvements. However, landlord proved the improvements were made. So there was no willful overcharge. The overcharge refund was reduced to $9,000, including interest.

Panora: DHCR Adm. Rev. Docket No. WB110032RO (7/16/08) [2-pg. doc.]