Lead Paint Abatement Isn't an Individual Apartment Improvement

LVT Number: #28025

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $9,615, including triple damages. Landlord appealed and won, in part. Landlord argued that, since the overcharge was based solely on disallowed individual apartment improvements (IAIs) that were clearly performed, triple damages shouldn't apply. Landlord also claimed that the IAI costs should have been approved. The DHCR found that the DRA properly disallowed IAI costs for lead paint abatement.

Rent-stabilized tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $9,615, including triple damages. Landlord appealed and won, in part. Landlord argued that, since the overcharge was based solely on disallowed individual apartment improvements (IAIs) that were clearly performed, triple damages shouldn't apply. Landlord also claimed that the IAI costs should have been approved. The DHCR found that the DRA properly disallowed IAI costs for lead paint abatement. Lead abatement isn't an improvement or new furnishing under Rent Stabilization Code Section 2522.4(a)(1) or the DHCR's Operational Bulletin on IAIs. Landlord incorrectly relied on a 2005 DHCR Opinion Letter, which suggested that lead paint abatement would be considered an improvement. But landlord did submit proof that floor work was done before tenant moved in, which qualified as an IAI. Triple damages were revoked, and the total overcharge, including interest, was $370.

Life Leasing, LP: DHCR Adm. Rev. Docket No. FN110051RO (9/20/17) [4-pg. doc.]

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