No IAI Increase for Electrical Work Done Outside Tenant's Apartment

Rent-stabilized tenant complained to the DHCR of rent overcharge. The DRA ruled against tenant and found no overcharge. Tenant appealed and won. The DRA had noted that landlord claimed that it did individual apartment improvements (IAIs) costing $74,000 before tenant moved in. Tenant had claimed there was no proof that IAIs had been performed. But DHCR inspection did find proof of IAI work. However, the DRA failed to fully review IAI documentation. The DHCR reviewed the record and disallowed the entire $20,000 charge for electrical work, since the work was building-wide and done outside the apartment. The DHCR also disallowed a $165 cost based on an illegible Home Depot receipt. The DHCR approved other IAI expenses documented by landlord. The base rent date was Aug. 14, 2011, and tenant moved into the unit on Dec. 1, 2011. In addition to the vacancy lease increase and longevity increase, the permissible IAI increase was $184 per month. The total rent overcharge calculated was $71,325, including interest and triple damages. 

Reis: DHCR Adm. Rev. Docket No. GT410007RT (3/22/23)[8-pg. document]