Rent Increase for IAIs Paid for by Insurance Proceeds Disallowed
LVT Number: #31142
The DHCR's Tenant Protection Unit (TPU) conducted an audit of an apartment's rent based on registered rent showing that a rent increase was based on individual apartment improvements (IAIs). TPU determined that the claimed IAIs didn't support the 2014 rent increase, and disallowed $32,000 in claimed IAI costs in part because the renovations were due to fire damage and landlord didn't provide any proof of its insurance claim or recovery proceeds. TPU directed landlord to reduce the monthly rent from $1,997 to $1,174 and refund overcharges to tenants.