Triple Damages Properly Assessed for Overcharge Based on Non-Itemized IAIs

Rent-stabilized tenant complained to the DHCR of rent overcharge. The DRA ruled for tenant, finding that landlord failed to sufficiently prove claimed individual apartment improvements (IAIs) and directing landlord to refund $35,330, including $23,553 in triple damages. Landlord appealed and lost. Landlord argued that it reasonably believed it was entitled to the IAI rent increase collected and that failure to submit an itemized cost breakdown of improvements or the exclusion of some of the work as maintenance and repairs wasn't willful. The DHCR pointed out that the DRA wasn't obligated to assign values for what may have been legitimate IAIs. So the entire IAI claim was properly disallowed. The DRA also sent landlord a triple damages notice while the overcharge complaint was pending, warning landlord that triple damages would be assessed. Landlord pointed out a prior decision where the DHCR disallowed only $3,500 out of a claimed $32,000 paid for IAIs. In that instance, however, since the overcharge was merely $400 based on the disallowance of window costs, triple damages weren't assessed. But in this instance the overcharge was properly assessed triple damages. 

3950 Blackstone Assoc. LLC: DHCR Adm. Rev. Docket No. MP610018RO (10/22/24)[3-pg. document]