One of the major features of the Rent Stabilization Law (RSL), and one much beloved by landlords, is the landlord’s right to add new equipment and improvements to an apartment, usually during a vacancy. These improvements are known as Individual Apartment Improvements, or IAIs. Formerly, a landlord could increase the rent by 1/40 of the cost of the IAIs; since 2011, the increases are 1/40 or 1/60 of the cost, depending upon the size of the building.
Statutes and Regulations
The RSL of 1969 did not provide for IAI rent increases. Instead, the basis for such increases is found in the Code of the Rent Stabilization Association (the RSA Code), which was adopted pursuant to the powers granted to the RSA in the RSL. Section 20(C)(1) of the RSA Code stated that where there is:
