Were IAIs Sufficient to Result in Vacancy Deregulation?

Unregulated tenant sued landlord, claiming that he was rent stabilized and that his rent should be frozen at the legal regulated rent in effect when the apartment was last registered with the DHCR, and seeking attorney's fees. Tenant claimed that there was sufficient proof to decide the case without a trial. The court disagreed. Landlord claimed that it had performed individual apartment improvements (IAIs) in 2007 and that the apartment was registered as permanently exempt (PE) in 2008. Landlord claimed that it had spent $62,000 for IAIs and that, when added to the permitted vacancy and longevity increases, the legal rent was $2,001.24 in 2007 and therefore properly vacancy deregulated. The prior rent-stabilized rent had been much lower. While landlord's proof of IAIs would be insufficient under the DHCR's current policy statement, DHCR Policy Statement 90-10, in effect when the work was done, required less documentation. In any event, the credibility of landlord's contractor can't be determined solely on the basis of a sworn statement. A trial was needed to determine the facts. 

Nuur v. 223 Avenue B, LLC: Index No. 157017/2016, 2019 NY Slip Op 50459(U) (Sup. Ct. NY; 3/25/19; Reed, J)