TPU Can Start Investigation Leading to Rent Overcharge Proceeding

The DHCR’s Tenant Protection Unit (TPU) commenced an Individual Apartment Improvements (IAI) audit of tenant’s rent and asked landlord to submit proof of the cost of IAIs. Landlord submitted documents. TPU then sent a notice claiming that the IAIs didn’t support the 2012 registered rent because of an incorrect longevity allowance and disallowance of the claimed cost of clearing hallways and coordinating with other tenants. The TPU sent landlord a worksheet itemizing its rent calculation and giving landlord 30 days to adjust the rent. When landlord did not do so, TPU referred the case to the DRA, who opened a rent overcharge proceeding. The DRA found some overcharge and ordered a refund to tenant. Landlord appealed and lost. Among other things, the DHCR noted that TPU had the authority to start a proceeding on its own initiative under Rent Stabilization Code Section 2527.2. TPU’s actions didn’t require initial evidence or a complaint from tenant. [Download the PDF here.]

Abu-Aziz: DHCR Adm. Rev. Docket No. CV210039RO (4/7/15) [7-pg. doc.]