Building Substantially Rehabbed in 2003 Is Exempt from Rent Stabilization

(Decision submitted by Arun Perinbasekar of the Rockville Centre law firm of Sidrane & Schwartz-Sidrane, LLP, attorneys for the landlord.)

Landlord asked the DHCR to determine a building’s rent regulatory status, claiming that the building had been substantially rehabilitated after Jan. 1, 1974. The DRA ruled for landlord and found that the building was exempt from rent stabilization. In 2000, a 7A Administrator was appointed after a court found that the building was dangerous to the life, health, and safety of the occupants. Prior landlord bought the building in 2002, when six of the eight apartments were vacant. The other two were rent controlled and remained occupied during the rehab. These apartments remained rent controlled, but landlord otherwise proved it had replaced 75 percent of building systems in a deteriorated building. One tenant appealed and pointed out that it was suing landlord in court for rent overcharge and that there were two prior DHCR orders that rejected landlord’s substantial rehab claims. The DHCR ruled that it wouldn’t consider arguments that were set forth for the first time in a PAR. 

Reif: DHCR Adm. Rev. Docket No. ER210033RT (2/23/17) [9-pg. doc.]