No Triple Damages for Disallowed Individual Apartment Improvement Costs

October 18, 2015

LVT Number: #26546

Rent-stabilized tenant complained of rent overcharge. After a fire in the apartment, landlord had added renovation costs to new tenant’s rent as individual apartment improvements (IAIs). Tenant claimed that landlord had received insurance reimbursement for the renovation work and therefore couldn’t collect an IAI rent increase. The DRA ruled for tenant and ordered landlord to refund $23,000, including triple damages. Landlord appealed, claiming that the overcharge wasn’t willful. The DHCR ruled for landlord and revoked the triple damages.

Rent-stabilized tenant complained of rent overcharge. After a fire in the apartment, landlord had added renovation costs to new tenant’s rent as individual apartment improvements (IAIs). Tenant claimed that landlord had received insurance reimbursement for the renovation work and therefore couldn’t collect an IAI rent increase. The DRA ruled for tenant and ordered landlord to refund $23,000, including triple damages. Landlord appealed, claiming that the overcharge wasn’t willful. The DHCR ruled for landlord and revoked the triple damages. Landlord claimed that he was unaware he couldn’t charge the IAI rent increase. And he didn’t receive the insurance proceeds until after signing tenant’s lease.

 

 
Bensonhurst Holdings LLC: DHCR Adm. Rev. Docket No. DQ210001RO (8/26/15) [5-pg. doc.]

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