Is Building Exempt Due to Substantial Rehab?

February 26, 2019

LVT Number: #29951

Landlord sued to evict tenant and claimed that tenant's building was exempt from rent stabilization due to substantial rehabilitation. Landlord asked the court to rule on the case without a trial. The court ruled against landlord. In order to qualify for a substantial rehabilitation exemption from rent regulation, DHCR Operational Bulletin 95-2 required landlords to prove that 75 percent of building systems had been replaced. Rent Stabilization Code Section 2520.11(e) authorized the DHCR to set forth these criteria in an operational bulletin.

Landlord sued to evict tenant and claimed that tenant's building was exempt from rent stabilization due to substantial rehabilitation. Landlord asked the court to rule on the case without a trial. The court ruled against landlord. In order to qualify for a substantial rehabilitation exemption from rent regulation, DHCR Operational Bulletin 95-2 required landlords to prove that 75 percent of building systems had been replaced. Rent Stabilization Code Section 2520.11(e) authorized the DHCR to set forth these criteria in an operational bulletin. And a trial was needed to determine the facts.

Heller v. Cooper: Index No. 570646/18, NYLJ No. 1547091607 (App. T. 1 Dept.; 12/28/18)

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