Triple Damages Applied to Rent Overcharge Based on Disallowed IAIs

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $50,000, including triple damages. Landlord and tenant both appealed and lost. Landlord claimed that the DRA improperly disallowed the cost of qualifying individual apartment improvements (IAIs) from the legal rent calculation, and improperly imposed triple damages. But the DRA added an IAI increase for over $10,000 of work and disallowed another $5,800, finding that those expenses were ordinary maintenance and repair items. These included tub reglazing, repair of a wall, and washing mildew and plaster from a wall, followed by painting and plaster. It didn't matter that, in prior cases, the DHCR didn't charge triple damages for overcharges based on disallowed IAIs. Rent Stabilization Code Section 2526.1(a)(1) calls for triple damages except for three specific reasons that didn't apply here. Tenant claimed that additional IAIs should be disallowed. But the fact that apartments doors may have been replaced six years before the IAIs in question didn't bar the IAI increase. Rewiring work done by landlord also qualified as an IAI.

561 West 144 Realty LLC/Vides: DHCR Adm. Rev. Docket Nos. ET410052RO, ET410087RT (7/12/17) [10-pg. doc.]