Rent Hike Denied for Repairs that Weren't Improvements

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $6,475, including triple damages. Tenant appealed and won, in part. In calculating the legal rent, the DRA had allowed $9,947 in claimed costs for individual apartment improvements (IAIs). The DHCR disallowed $6,325 of the previously approved IAIs. The DRA had mistakenly approved the cost of removing a kitchen wall and installing new Sheetrock. The DHCR also disallowed the installation of new door frames, electrical wiring, and plastering and painting the entire apartment. These were repairs, not improvements. The total overcharge, including triple damages, was $12,850.

Haigler: DHCR Adm. Rev. Docket No. ZJ210009RT (4/19/13) [4-pg. doc.]