Building Completed Prior to Jan. 1, 1974

Facts: Tenant complained of a rent overcharge. Landlord claimed the apartment was exempt from rent stabilization. Landlord said that the building was constructed after the rent stabilization law went into effect and was only subject to stabilization for 10 years under the Real Property Tax Law Section 421-a tax abatement program. Buildings constructed after Jan. 1, 1974, are otherwise exempt from rent stabilization. The DRA ruled for tenant, finding an overcharge. The DRA also ruled that the apartment was rent-stabilized. Landlord appealed. DHCR: Landlord loses. When it was applying for 421-a benefits, landlord received from the city a Preliminary Certification of Eligibility, stating that the building was completed on Nov. 16, 1973. Landlord claimed this was a mere technicality and that parts of the construction weren't done until after Jan. 1, 1974. The DHCR ruled that the building was ''completed'' when the first temporary C of O was issued in November 1973. The temporary C of O authorized use and occupancy of 115 apartments, a recreation room and a doctor's office. This was the same number as in the final C of O. The only difference in the final C of O involving dwelling space was that one duplex apartment was configured differently and that a health club was added. The DHCR also noted that the intent of the rent stabilization law's exemption was to encourage future housing construction after Jan. 1, 1974.

Thurcon Properties, Ltd.: DHCR Adm. Rev. Dckt. No. JD 410008 RP (11/8/96) [5-page document]