Overcharge Resulted from Charging 1/40th IAI Rent Increase, Instead of 1/60th

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $1,430, including interest. Tenant appealed and lost. In response to the overcharge complaint, landlord submitted documentation to show it spent $29,000 on individual apartment improvements (IAIs). Tenant claimed that some of the work wasn't performed and submitted a sworn statement from a contractor to support this claim. Based on this dispute, the DRA sent an inspector to the apartment. The DHCR's inspector confirmed that landlord performed the claimed IAIs, including new Sheetrock and floor installation, bathroom renovations, new kitchen cabinets, and new electric wiring. The overcharge resulted from landlord's calculation error. Landlord charged tenant 1/40th of the IAI cost as a rent increase. But, in 2011, the Rent Stabilization Law was amended to change the IAI rent increase to 1/60th for buildings containing more than 35 apartments. The DHCR found that the resulting overcharge wasn't willful.

Frydman: DHCR Adm. Rev. Docket No. GV410043RT (4/23/19) [4-pg. doc.]