Overcharge Finding Revoked Where Landlord Proved Costs Spent for IAIs

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and directed landlord to refund $53,700, including interest. Landlord appealed and won. Landlord claimed that the DRA incorrectly disallowed a rent increase for individual apartment improvements (IAIs) made to the apartment before tenant moved in. The DHCR found that landlord submitted documentation to the DRA sufficient to support the claimed $63,000 spent on IAIs in 2004. Landlord submitted a copy of a signed agreement with a contractor, along with receipts for payment from the contractor. Landlord also submitted a sworn statement from the contractor that full payment was received. Landlord therefore was entitled to an IAI rent increase of $1,575, and there was no rent overcharge. [Download PDF of decision here.]

Qi Long LLC: DHCR Adm. Rev. Docket No. FW210042RO (8/16/18) [3-pg. doc.]