Landlord Submitted Sufficient Proof of IAIs

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $2,667, including interest. Tenant appealed, claiming that the overcharge was greater. Tenant contested the individual apartment improvement (IAI) increase approved by the DRA. But the DHCR found that landlord had sufficiently documented the IAI rent increase with contractor invoices and cancelled checks payable to the contractors. Landlord signed a contract to gut-renovate four apartments for $110,000 shortly after buying the building. Landlord showed that a second contractor was hired to complete the work after the first contractor's insurance lapsed. And the DHCR wouldn't consider a sworn statement by tenant's contractor submitted for the first time with tenant's PAR that questioned the work performed since it wasn't submitted to the DRA. There also was no indication of any fraudulent scheme to deregulate the apartment that made the base date unreliable. The IAIs in question were done after the base date, and the apartment remained rent stabilized. 

Bae: DHCR Adm. Rev. Docket No. GP210037RT (5/17/19) [6-pg. doc.]