Landlord's Proof of IAIs Was Insufficient

Tenant complained of rent overcharge. Landlord claimed that the apartment was permanently exempt since 2010. The DRA ruled for tenant, found that the apartment was rent stabilized, and ordered landlord to refund $65,000, including triple damages. Landlord appealed and lost. The DRA properly disallowed individual apartment improvements (IAIs) claimed by landlord since landlord's proof was insufficient. Landlord produced a contract with one company to do work for $30,000, an amount not even claimed for the IAIs. There was no proof that the contractor, as opposed to landlord, retained subcontractors even though landlord listed 19 vendors who supposedly did work. There were no separate invoices from any of them. Landlord listed four vendors who performed "labor" but provided no description of what they did. Cancelled checks submitted by landlord to show payment for work done contained inconsistencies concerning which apartments the work related to. The DRA properly disallowed the IAI increases, and the legal rent for the apartment never reached the $2,000 deregulation threshold in 2010.

161 Troutman LLC: DHCR Adm. Rev. Docket No. FN210032RO (10/11/17) [5-pg. doc.]