Landlord Submitted Sufficient Proof of IAIs Under Prior Rules

(Decision submitted by Michael Littman of the Rockville Centre law firm of Sidrane & Schwartz-Sidrane, LLP, attorneys for the landlord.)

Rent-stabilized tenant complained of rent overcharge. The DRA reduced tenant’s rent from $1,900 to $1,807 and ordered a refund of $1,500 with interest. The DRA also said that landlord was entitled to collect a rent increase of $842 based on individual apartment improvements (IAIs) costing $50,547, after disallowing about $5,600 of the total cost. Tenant appealed and lost. Tenant disputed the permitted IAI costs. The DHCR noted that Operational Bulletin 2016-1 now required to submit four forms of proof to support IAIs in response to overcharge claims. But, in this case, the IAI work was done in 2014, prior to issuance of the Operational Bulletin. In 2014, DHCR Policy Statement 90-10 required landlord to submit only one form of IAI documentation, if the work was questioned. In this case, landlord submitted copies of paid invoices and cancelled checks contemporaneous with the work. The DRA disallowed the costs that didn’t have adequate proof of the apartment where the work was done. [Download PDF of decision here.]

Pugachev: DHCR Adm. Rev. Docket No. EV610056RT (5/10/17) [3-pg. doc.]