Building Was Substantially Rehabilitated

Tenants appealed the DRA’s ruling that their building had been substantially rehabilitated after Jan. 1, 1974, and therefore was exempt from rent stabilization. They claimed that landlord performed illegal construction and hadn’t provided sufficient proof of the rehab. The DHCR ruled against tenants. At least 80 percent of the building was vacant when landlord performed the work. Landlord proved that it replaced at least 75 percent of the building-wide and apartment systems in the building. Among other things, landlord replaced the plumbing, gas supply, heating, windows, doors, and fire escapes, and performed the interior renovation of the existing structure. Landlord also installed new kitchens and bathrooms, electricity equipment, heating units and hot water tanks, metal fireproof apartment doors, Sheetrock on ceilings and walls, oak flooring, and windows in each apartment.

Various Tenants of 505 Lafayette Avenue: DHCR Adm. Rev. Docket No. XJ210022RT (5/7/10) [4-pg. doc.]