All IAI allowable monthly increases become part of the legal rent for the apartment. IAI increases are based
on the total substantiated cost of an improvement (limited to $30,000 or $50,000, as applicable) including
installation cost but excluding finance charges and excluding any costs exceeding reasonable costs. Additionally,
if an owner needs to hire an independent contractor and plans on calculating related installation costs to be
passed on to the tenant, the contractor must be licensed. There can be no common ownership or identity of
interest between the owner and such contractor or any persons receiving payment for the IAI (either equipment
or labor) (see VII IDENTITY OF INTEREST below). Also, the owner must resolve all outstanding hazardous
or immediately hazardous violations of the Uniform Fire Prevention and Building Code (Uniform Code), New
York City Fire Code, or New York City Building and Housing Maintenance Codes that pertain to the subject
apartment.
Issued (10/24) OB-2024-2 Page 3 of 8
A. Increases Under New and Old Rules
If an IAI rent increase was in effect prior to June 14, 2019, the IAI is governed by the law in effect at that time,
including the applicable amortization rate.1 These IAIs do not count toward the $30,000 or $50,000 limitation
on IAIs in a 15-year period.