Tenant Challenges Claimed Apartment Improvement Costs

Tenant complained of a rent overcharge. Landlord claimed that the apartment was deregulated because tenant's first rent was $2,300 per month. Landlord said it had spent over $37,000 on individual apartment improvements before tenant moved in. The DRA allowed a rent increase based on $26,000 in improvement costs but disallowed any increase for $11,000 of costs it found were for repairs. The DRA ruled against tenant and found that since the legal rent still was more than $2,000 when tenant moved in, the apartment was exempt from rent stabilization. Tenant appealed, claiming that there were discrepancies in the DRA's order and that the DHCR should have conducted an apartment inspection. The DHCR ruled for tenant in part. Tenant also correctly pointed out that the DRA's order states that the cost of a dishwasher is both allowed and disallowed. The total cost for the disallowed items also was greater than the amount stated in the order for those items. The case was reopened and sent back for further consideration. The DRA must look further into tenant's objections to certain claimed improvements. But no apartment inspection could be conducted, because tenant had moved out of the apartment.

Gray: DHCR Adm. Rev.Docket No. VA410018RT (5/30/07) [2-pg. doc.]