No IAI Increase Permitted for Molding that Wasn't New

LVT Number: #28249

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $5,490, including interest. Landlord appealed and lost. Landlord objected to the DRA's denial of a rent increase for an individual apartment improvement (IAI) consisting of new apartment molding. Tenant had claimed that the molding wasn't replaced. The DHCR noted that landlord hadn't raised any issue about the molding before the DRA.

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $5,490, including interest. Landlord appealed and lost. Landlord objected to the DRA's denial of a rent increase for an individual apartment improvement (IAI) consisting of new apartment molding. Tenant had claimed that the molding wasn't replaced. The DHCR noted that landlord hadn't raised any issue about the molding before the DRA. But photographs tenant submitted showed that the molding contained bumps, cracks, multiple layers of paint, and that the newest layer of paint was chipped away, revealing layers of old paint with darker colors. The DRA correctly disallowed $3,500 from landlord's IAI costs when calculating the apartment's legal rent. 

A&S Property Co., LLC: DHCR Adm. Rev. Docket No. FO210061RO (11/16/17) [3-pg. doc.]

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