Building Constructed Before 1974 and Rehabbed Wasn't Subject to Rent Stabilization

Building tenants applied to the DHCR for a determination of the building's rent regulatory status. They claimed that the building was built before 1974, contained at least six units, and was rehabilitated with the assistance of Section 8 Moderate Rehabilitation Program and Participation Loan Program (PLP) loans provided under New York Private Housing Finance Law (PHFL) Article 15.

The DRA ruled against tenants, finding that a prior 2023 DHCR order had determined that the building was owned by a Housing Development Fund Corporation (HDFC) and therefore wasn't subject to the DHCR's jurisdiction.

Tenants appealed and lost. They argued that notwithstanding that the building was owned by an HDFC, it was rehabilitated under the PLP and therefore was rent stabilized.They claimed that the exemption for housing accommodations owned, operated, and rented or leased with governmental funding exclusively for charitable purposes didn't apply in this case. But the DHCR pointed out that its prior order was a final administrative determination, was correct when issued, and that tenants didn't present any reason to disturb the challenged DRA order.

Various Tenants of 11-15 New Montrose Avenue: DHCR Adm. Rev. Docket No. MO210013RT (10/18/24)[2-pg. document]