No High-Rent Vacancy Deregulation Where Work Didn't Qualify as IAIs

Tenant asked the DHCR to determine his rent-regulated status. DHCR rent registration records listed the apartment as exempt from rent stabilization based on high-rent vacancy. The DRA ruled against tenant, finding that the apartment became vacant on or after June 19, 1997, with a legal regulated monthly rent of $2,000 or more and therefore was deregulated. Tenant appealed and won. Tenant raised a number of issues concerning the leasing of the apartment and rent paid. But the apartment's status hinged on whether landlord was entitled to an individual apartment improvement (IAI) rent increase for work done in 2009. The DHCR conducted two inspections of the apartment to investigate the IAIs. Landlord had submitted a 2009 invoice for work costing $17,250 and consisting of removal and replacement of kitchen cabinets and appliances, replacement of floorboards and carpeting, and replacement of radiators. Inspection showed that some of the improvements were made but that others were questionable or were merely maintenance or repair work. The DHCR revoked the IAI rent increases granted by the DRA. The apartment therefore didn't become deregulated due to high-rent vacancy, and tenant was subject to rent stabilization.

Goor: DHCR Adm. Rev. Docket No. CO210035RT (10/14/14) [6-pg. doc.]