Landlord Submitted False Proof of MCIs

Rent-stabilized tenant complained of a rent overcharge. Landlord claimed that there was no overcharge because it made apartment improvements and properly added 1/40th of the cost to tenant's rent when he moved in. The DHCR ruled against landlord and found that the improvement costs were inflated and based on false documents. Landlord appealed, claiming that the DHCR's decision was arbitrary and unreasonable. The court ruled for landlord. Tenant appealed and won. The DHCR's decision was reasonable based on the record. Someone other than landlord was named on the construction contract as the insured party. The scope of the construction contract was significantly different from the actual condition of the apartment. Apparently comparable improvements in other similar units in the building cost substantially less. And the checks submitted to prove payment to the contractor didn't show who endorsed them, and the contractor couldn't be found.

Riverside Equities LLC v. DHCR: NYLJ, 1/26/09, p. 28, col. 5 (App. Div. 1 Dept.; Tom, JP, Andrias, Nordelli, Catterson, Moskowitz, JJ)