Building Converted to Residential Use After Jan. 1, 1974

Facts: Landlord applied to the DRA for a ruling that a building was exempt from rent stabilization. Landlord claimed that apartments in the building were completed as residential units on or after Jan. 1, 1974. Landlord bought the building in 1969. It was then a six-story commercial building. Landlord had converted the second through sixth floors into residential use, with a total of 40 apartments. An alteration permit was filed in 1972, and the work was performed in 1973 and 1974. Landlord gave tenants rent-stabilized leases in 1974 while it was awaiting J-51 benefits. Landlord's J-51 application was denied. So, landlord claimed that the building wasn't rent-stabilized. Landlord stated that it would continue to treat existing tenants as rent-stabilized, but didn't want to do so with future tenants. DHCR: Landlord wins. Landlord showed that the building was converted from commercial to residential use after Jan. 1, 1974. The DOB had issued a temporary certificate of occupancy (C of O) on Jan. 18, 1974. DOB documents showed that work was still being done in the building after Jan. 1, 1974. The permanent C of O was issued on Sept. 27, 1974.

Fraydun Enterprises: DHCR Adm. Rev. Dckt. No. EG 430024-RO (11/10/93) [7-page document]