No Fraud Found in Connection with IAIs

Rent-stabilized tenant complained of rent overcharge, claiming that individual apartment improvements (IAIs) done by landlord were merely repairs. She also claimed that landlord was charging her a preferential rent. The DRA ruled against tenant, finding no overcharge. Tenant appealed and lost. Tenant claimed that the DRA should have examined pre-base date rent history due to landlord fraud. But the DHCR found that tenant didn't set forth sufficient proof of fraud that would warrant further rent history review. Tenant claimed that landlord didn't submit adequate proof of pre-base date IAIs. But this claim wasn't enough to support a fraud allegation. And landlord did submit sufficient information concerning IAIs in the form of invoices, receipts, and a tenant-signed authorization letter from 2009. That letter itemized the IAIs and tenant consent to the 1/40th rent increase. Since landlord didn't charge tenant a preferential rent on the base date, there also was no additional reason to look back more than four years.

Serrano: DHCR Adm. Rev. Docket No. GM610027RT (11/26/18)[3-pg. document]