Landlord Proved Vacancy Deregulation of Apartment Through IAIs

Tenant complained to the DHCR, claiming rent overcharge and improper deregulation of his apartment. The DRA ruled against tenant because landlord submitted documentation that the unit was vacancy deregulated in 2007, before tenant moved in.

Tenant appealed and lost. The last monthly registered rent-stabilized rent was $1,519 in April 2007. When prior tenants moved out, landlord spent $12,000 on individual apartment improvements (IAIs). Addition of the statutory vacancy increase and IAI rent increase to the last rent-stabilized rent brought the legal rent above the high-rent vacancy deregulation threshold in effect at that time. Landlord also registered the apartment contemporaneously as permanently exempt. The fact that landlord mistakenly gave the complaining tenant a rent-stabilized lease didn't make the apartment rent stabilized. 

Joyner: DHCR Adm. Rev. Docket No. MW210027RT (4/15/25)[2-pg. document]