Building Substantially Rehabilitated in 2007 Was Exempt from Rent Stabilization

Landlord asked the DHCR to determine that its building was exempt from rent stabilization based on substantial rehabilitation completed in 2007. HPD had issued a vacate order for the building in 2006 after a fire, and DOB approved landlord's plans to renovate the building and issued a letter of completion in June 2007. The DRA ruled for landlord, finding that landlord showed that it replaced at least 75 percent of the building and apartment systems. Tenant appealed and lost. Landlord showed that the building contained 15 of the 17 systems listed in the DHCR's Operational Bulletin 95-2, that 75 percent of those had been replaced, and that the building was at least 80 percent vacant when the work commenced. Landlord replaced plumbing, heating, gas supply, electrical wiring, intercoms, windows, roof, interior stairways, kitchens, bathrooms, floors, ceilings and wall surfaces, and doors. Landlord's architect submitted a statement describing the work performed. And HPD's Vacate Order noted that the entire building had been fire damaged and was uninhabitable.  

Williams: DHCR Adm. Rev. Docket No. FM210038RT (1/19/18) [11-pg. doc.]