IAI Increase Approved for Building Wall to Divide Living Room

Tenant complained of rent overcharge. The DRA ruled for tenant, finding a total overcharge of $104, including interest. Tenant appealed and lost. The DRA had approved an individual apartment improvement (IAI) rent increase based on landlord's $9,000 cost for creating a wall in the apartment, that divided the living room into two rooms, and adding an internal door. Tenant claimed that, under DHCR Operational Bulletin 2016-1, painting and plastering qualified as an IAI if part of a major renovation and if Sheetrock was done throughout the apartment. But the bulletin also stated that the DHCR's list of includible items wasn't intended to be exclusive and was "not determinative in all cases. Items not listed . . . also may qualify." The DRA reasonably found that building a wall that didn't exist previously constitutes an IAI. The wall was a new installation.

Oliveira: DHCR Adm. Rev. Docket No. FX210035RT (11/28/18) [3-pg. doc.]