DHCR Makes No Regulatory Finding on Sub Rehab Application Withdrawn Without Prejudice

Landlord filed an application with the DHCR in August 2022, seeking a determination that its building was exempt from rent stabilization due to substantial rehabilitation. In January 2023, landlord requested that its application be withdrawn without prejudice. The DRA ruled for landlord, noting that the application was "closed without action," but also made a finding that the "subject building remains subject to regulation."

Landlord appealed and won. Landlord argued that the language in the DRA's order stating that the building remained subject to regulation should be removed. The DHCR agreed. There was no actual finding in the DRA's order concerning the building's regulatory status. A building is exempt from rent regulation due to substantial rehabilitation by operation of law, and the DRA's order made no finding on the merits. Landlord also reserved its right to refile the application. The DHCR modified the DRA's order to state that it was withdrawn "without prejudice." This was a no merits determination on the status of the building.

Cooper Palace LLC: DHCR Adm. Rev. Docket No. LP210024RO (6/13/23)[2-pg. document]