Building Exempt Due to Substantial Rehab

Landlord asked the DHCR for a ruling on whether its building was exempt from rent stabilization due to substantial rehabilitation. The DHCR ruled against landlord, who then filed an Article 78 court appeal. The court sent the case back to the DHCR for reconsideration. The DRA then ruled for landlord. Tenants appealed and lost. Landlord proved that it had replaced 16 building systems. These were apartment ceilings and walls, intercoms, windows, doors and frames, elevator, interior stairs, roof, common areas, bathrooms, plumbing, pointing or exterior-surface repair, kitchens, gas supply, apartment floors, heating, and wiring. This constituted more than 75 percent of the building systems listed in DHCR Operational Bulletin 95-2as required for substantial rehab. 

29 Avenue B Tenants' Association: DHCR Adm. Rev. Docket No. BU410001RP (11/19/14) [8-pg. doc.]