Proof of IAIs for Bathroom Replacement Proved No Rent Overcharge

Rent-stabilized tenant complained of rent overcharge in 2018. The DRA ruled for tenant and ordered landlord to refund $13,204, including interest and triple damages. Landlord appealed, claiming that the DRA failed to consider individual apartment improvements (IAIs) made to the apartment before tenant moved in and submitted to the DRA. The DHCR ruled against landlord, finding that the proof of a bathroom replacement costing $11,208 hadn't been submitted to the DRA. Landlord then filed an Article 78 court appeal, claiming that the DHCR's decision was arbitrary and unreasonable. The court sent the case back to the DHCR for further consideration, including consideration of the IAI costs. The DHCR then found that there was no overcharge. Landlord's IAI documentation included a contract for the work done and concelled checks. Landlord therefore had submitted sufficient proof of the IAIs under DHCR Policy Statement 90-10, in effect at the time the work was done.

Fortress Rockaway, LLC: DHCR Adm. Rev. Docket No. MO210002RP (7/2/24)[4-pg. document]