Building Exempt from Rent Stabilization Due to Substantial Rehab

Tenant complained to the DHCR of rent overcharge. Landlord claimed that tenant wasn't rent stabilized because the building had been substantially rehabilitated. Landlord also started an eviction proceeding against tenant. Both the overcharge proceeding and the housing court case were delayed when the DHCR advised landlord to file an application to determine if the building had been substantially rehabilitated. The DRA ruled for landlord, finding that the building had been substantially rehabilitated between 2000 and 2003.

Tenant appealed and lost. Landlord showed that the building was vacant and substandard when rehab began in 2000. Landlord converted the six-unit building to one containing 16 new apartments and replaced more than 75 percent of the building-wide and apartment systems. DOB issued a new Certificate of Occupancy when the work was completed. Landlord's proof included DOB applications, approved building plans, work permits, governmental approvals, photographs, and a licensed architect's certification. The building was exempt from rent stabilization as a result of substantial rehabilitation performed after Jan. 1, 1974.

Lee: DHCR Adm. Rev. Docket No. GQ210076RT (8/9/18) [8-pg. doc.]