Building Substantially Rehabilitated

(Decision submitted by Jeffrey Turkel of the Manhattan law firm of Rosenberg & Estis, P.C., attorneys for the landlord.) Landlord applied to the DHCR for exemption from rent stabilization based on substantial rehabilitation of the building. The DRA ruled against landlord because work wasn't complete and advised landlord it could reapply later. Landlord appealed. The work was completed shortly after the DRA's order and a new C of O were issued. The DHCR considered landlord's PAR since the work was largely completed when the DRA's order was issued. The DHCR ruled for landlord and found that the building had been substantial rehabilitated. Landlord had converted the six-story building from 142 hotel-style studio apartments to 89 one- and two-bedroom family units. Before renovation, the building had numerous violations and an 80 percent vacancy rate. Landlord submitted extensive proof in the form of canceled checks, receipts, contracts, building plans, and the new C of O, proving that the building-wide and apartment systems had been replaced or made as new.

L.B.25, Inc.: DHCR Adm. Rev. Dckt. No. KB710073RO(9/18/97) [3-page document]