Building Substantially Rehabilitated After Fire

Yonkers landlord asked the DHCR to determine whether its building was exempt from the ETPA, based on a substantial rehabilitation of the building done after Jan. 1, 1974. The building had contained 35 apartments. A fire in 1989 almost totally destroyed the building. Most tenants were relocated. After a thorough rehabilitation, which included complete new building systems, the building contained 36 apartments. The renovation cost over $1 million. The DRA ruled that the building was still rent stabilized because it was substantially rehabilitated with funds received from an insurance policy paid for by rents from all tenants living there before the fire. Landlord appealed and won. The building was substantially rehabilitated after Jan. 1, 1974, and by law was therefore exempt from stabilization. There was no law, regulation, or court case that barred this result because the work was paid for by insurance money.

Tray Associates: DHCR Adm. Rev. Dckt. No. HJ-910019-RO (6/20/95) [5-page document]