If it is alleged or found that improvements to an apartment were made by an employee of the owner/managing
agent, and/or new equipment was installed by an employee of the owner/managing agent, payroll records
including hours worked on the IAI and the schedule of payment for the work will be requested. The owner will
be required to prove that the employee was paid for the work separately from, and in addition to his/her normal
salary.
VIII. CASH PAYMENTS
For IAI’s performed where there are total cash payments for an IAI in an amount that exceeds $10,000, stricter
scrutiny of the evidence supporting a rent increase is warranted. DHCR will request further proof of payment
in the form of bank documentation proving the withdrawal of such funds, including evidence as to how funds
were transferred. Such proof, including documentation required by the Internal Revenue Code, would be in
addition to affidavits of receipt by the vendor/contractor where normal receipts issued in the course of business
are not available.
IX. WHAT QUALIFIES AS AN INDIVIDUAL APARTMENT IMPROVEMENT?
A. Items that may qualify as an IAI:
The RSC provides generally that apartment improvements, new equipment, or new services are considered
improvements eligible for an IAI rent increase. The list provided below is intended to provide examples of
qualifying IAIs; this list is not intended to be exclusive and is not determinative in all cases. Please note that
Revised (10/25) OB-2024-2 Page 6 of 8
items not listed below may also qualify: