Landlord Submitted Same Proof of Improvements in Two Prior Cases

Rent-stabilized tenant complained of a rent overcharge. Landlord claimed that it spent $18,000 on individual apartment improvements before tenant moved in and therefore was entitled to a 1/40^th rent increase. The DRA ruled for tenant and ordered landlord to refund $18,000, including triple damages. Landlord appealed and lost. Landlord submitted the same invoice in two prior overcharge proceedings involving other apartments, failed to submit proof of payment to the contractor, and it was unclear if the money was spent for work done in tenant’s apartment alone or for two more apartments. The apartment number appeared to have been altered on the invoice copy submitted in this case. Since there was no credible documentation for the claimed work, the DRA properly disallowed any 1/40^th rent increase and found the overcharge willful.

Nasser: DHCR Adm. Rev. Docket No. XF210046RO (12/30/09) [2-pg. doc.]