Rent Hike for IAIs Disallowed Due to Contractor Relationship with Landlord

Tenant complained of rent overcharge in 2012. Landlord claimed that the apartment was vacancy-deregulated in 2010 before tenant moved in because individual apartment improvements (IAIs) added a rent increase that placed the legal rent above the $2,000 deregulation threshold. The DRA ruled for tenant. A separate DHCR order had disallowed the IAIs due to landlord's relationship with its contractor and inconsistencies with materials claimed to be used. That order found that prior tenant's monthly rent was $756 and tenant's lawful vacancy rent was $962. The DRA directed landlord to refund $33,947, including interest. Landlord appealed and lost. Landlord disputed the DRA's findings about the IAIs. But the IAI issue had been decided in a separate DHCR order, which landlord didn't appeal. Landlord couldn't collaterally challenge that order in this proceeding. 

102 Albemarle Associates LLC: DHCR Adm. Rev. Docket No. IS210067RK (12/23/20) [3-pg. doc.]