Maintenance and Repair Items Disallowed from IAI Costs

Tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $2,470, plus interest. Landlord appealed and lost. Landlord claimed that the DRA incorrectly disallowed some of the $32,000 landlord spent on individual apartment improvements (IAIs) before tenant moved into the apartment. The DRA also approved 1/60th of the IAI cost instead of 1/40th of the cost. Landlord claimed that the building had 35 or fewer apartments, so the 1/40th calculation applied. The DRA had found that the building had 36 or more apartments based on DHCR rent registrations for 2014. Landlord should have known this was an issue before the DRA and couldn't raise it now for the first time on appeal. The DRA also properly disallowed costs of repair of damaged window sills, damaged subfloor and wood flooring in the bedroom, sanding and polyurethane of existing floors, plastering and painting throughout the apartment, and glazing the bathtub. These were all maintenance and repair items. 

GC Clinton LLC: DHCR Adm. Rev. Docket No. CS210012RO (3/5/15) [4-pg. doc.]