Pursuant to HSTPA, all forms of deregulations, with the exception of 421-a (16) apartments, were repealed
as of June 14, 2019. For apartments which were previously deregulated pursuant to high-rent vacancy, a
listing of IAIs and their total cost were required to be included in the notice of deregulation served on the
tenant. This notice of deregulation and related IAI reporting requirements are still applicable to 421-a (16)
apartments.
When an owner installs an improvement, the item becomes a required service. Owners are required to
maintain and to certify annually to DHCR that all required services, including the IAI, are being maintained.
When an owner fails to maintain a required service or discontinues the service without permission from
DHCR, a rent reduction may be ordered by the agency. DHCR will freeze the rent and order a roll back of
the rent to the prior guidelines rent adjustment including any intervening rent increases for that period until
the agency finds the subject service has been restored upon the owner’s application. See DHCR’s Fact Sheet
#35 on the Collectability of Major Capital Improvement (MCI) and/or Individual Apartment Improvement
(IAI) Rent Increases Where the Rent is Reduced Because of Diminution of Services and Rent Reductions
for Decreased Services, and DHCR’s Operational Bulletin 2014-2 on the Collectability of MCI/IAI
Increases Where the Rent is Reduced Because of Diminution of Services.
I. PROOF OF INSTALLATION AND PAYMENT
A. Acceptable forms of proof:
Claimed individual apartment improvements are required to be supported by adequate and specific
documentation. This documentation should be maintained in owners’ files and include: