Landlord Proves Apartment Was Vacancy Deregulation After IAIs Performed

Landlord applied to the DHCR in 2021 for a ruling on whether tenant's apartment was subject to rent stabilization. Landlord claimed that individual apartment improvements (IAIs) performed in 2001, along with subsequent vacancy increases, resulted in a legal regulated rent by 2003 that was legally increased from $456.88 to more than the $2,000 vacancy deregulation threshold then in effect. The DRA ruled for landlord.

Tenant appealed and lost. Landlord had submitted sufficient proof that it spent $35,000 on IAIs, and subsequent lawful increases brought the apartment rent above the vacancy deregulation threshold. It also didn't matter that landlord had mistakenly given tenant a rent-stabilized lease when she moved in. Rent stabilization coverage is a matter of statutory right, and can't be created by waiver or estoppel. 

Draut-Diggs: DHCR Adm. Rev. Docket No. LR410012RT (4/3/25)[5-pg. document]