Glambosky Delivers Victory for East Village Landlord

August 28, 2026 | Real Estate, Zoning & Land Use | Commercial Litigation

A tenant occupying an East Village, NYC, apartment, sued the landlord, alleging a substantial rent overcharge. The suit claimed that the landlord fabricated or improperly claimed Individual Apartment Improvements (IAIs) when increasing the tenant’s rent, failed to properly register the apartment, and engaged in a fraudulent scheme to improperly deregulate the apartment building.

The tenant sought treble damages and reimbursement of approximately $35,530 in attorneys’ fees.

Erez Glambosky, on behalf of the landlord, argued that there was no evidence of a fraudulent scheme and that the building’s registration history demonstrated lawful treatment of the apartment. The Commission of the New York State Division of Housing and Community Renewal (DHCR) agreed and found “no evidence of a fraudulent scheme to deregulate.” In addition, the Commissioner noted that the tenant is benefitting from a rent-stabilized lease.

To substantiate the IAIs, the landlord produced invoices paired with cancelled checks documenting the work. DHCR specifically credited evidence for plumbing, flooring, demolition and renovation, wall and ceiling preparation, appliances, windows, electrical work, architectural services, construction management and other improvements. The Commissioner concluded that the owner had provided “sufficient evidence to justify the IAI rent increase” under the DHCR policy applicable at the time.

In an attempt to undermine the improvements, the tenant claimed that some payments for the improvements were made after the tenant had taken occupancy. DHCR, however, found that it is not unusual for an owner to pay for improvement work after completion, including payments occurring after the incoming tenant’s occupancy. The Commissioner denied the overcharge complaint, causing the tenant’s claims for treble damages and attorneys’ fees to collapse.

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