Building Substantially Rehabbed in 1999 Was Exempt from Rent Stabilization

The DRA granted landlord's application for a ruling that its building had been substantially rehabilitated in 1999 and therefore was exempt from rent stabilization. Tenant appealed and lost. Tenant claimed that landlord didn't prove it replaced the required 75 percent of building systems listed in DHCR Operational Bulletin 95-2, and that the building wasn't in substandard condition when the work was done. But landlord proved that three of the DHCR's 17 listed systems didn't exist at the building. Landlord replaced 11 out of 14 systems and therefore met the 75 percent requirement. DOB issued a new Certificate of Occupancy in 1999, and landlord's engineer stated that the building was vacant when work began in 1998, indicating substandard condition. Tenant didn't submit any architect or engineer's statement contradicting landlord's submissions.

Stroud: DHCR Adm. Rev. Docket No. FV210027RT (6/14/18) [5-pg. doc.]