Landlord Proves Apartment Was Vacancy Deregulated with Proof of IAIs

Tenant complained to the DHCR in 2018 of rent overcharge and claimed that landlord improperly deregulated the apartment in 2015.  Landlord claimed that the unit was legally deregulated as of Aug. 1, 2015, when prior tenant's legal rent exceeded $2,500 per month after landlord added a vacancy increase, longevity increase, and IAI increase based on $65,000 spent on improvements. The DRA ruled against tenant, finding that landlord proved vacancy deregulation of the apartment took place in August 2015, following the 2014 base rent date.

Tenant appealed and lost. Landlord's proof of IAIs was consistent with DHCR Policy 90-10, which was in effect at the time that the work was done. Tenant also submitted no proof of his claim that landlord engaged in a "scheme" for rent fraud. And, although the DRA disallowed a few of the claimed IAIs and should have disallowed another one, the total permitted IAI costs still resulted in vacancy deregulation.

Simon: DHCR Adm. Rev. Docket No. KX210006RT (4/4/23)[4-pg. document]