Landlord's DOB Estimate Didn't Limit Collectible IAI Costs

Tenant complained of rent overcharge. The DRA ruled against tenant. Landlord proved the cost of individual apartment improvements (IAIs) performed in 2008 and then collected a proper vacancy rent increase when tenant moved into the apartment. Tenant appealed and lost. Tenant claimed that landlord's IAI costs were inflated and higher than costs approved by DOB on its architect's work permit application. Tenant didn't raise this issue before the DRA, so the DHCR wouldn't consider it. And, even if the DHCR did consider this claim, the costs submitted to DOB were only an estimate and didn't cover all of landlord's IAI costs. Landlord's invoices and cancelled checks were more reliable proof of the actual IAI costs. And nothing in the Rent Stabilization Law or Code required IAI costs to conform with cost estimates submitted to other agencies.

Portoff: DHCR Adm. Rev. Docket No. CP410029RT (1/7/15) [5-pg. doc.]