Four-Apartment Building Actually Contained 10 SRO Units

Landlord asked the DHCR for a ruling on whether its building contained fewer than six dwelling units. Landlord submitted a 1988 Certificate of Occupancy from DOB listing the building as having four apartments, a store, and a garage. The DRA found that the building contained at least 10 SRO units and therefore was rent stabilized.

Landlord appealed and lost. DHCR inspection showed that the first floor was a commercial storefront; the second floor contained three SROs, a common kitchen, and a bathroom; the third floor contained four SROs, a common kitchen, and a common bath; and the fourth floor contained three SROs, a common kitchen, and a common bath. There were six electric meters and four gas meters in the basement, and four mailboxes shared by multiple tenants whose names were listed on the boxes. Landlord argued that any change in how the four apartments currently were occupied by unrelated individuals didn't create SROs in the building. The DHCR's inspector relied on the definition of an SRO found in Multiple Dwelling Law Section 4(16), and the engineer's report submitted by landlord for the first time with its PAR didn't refute the DHCR's findings.

Port Rich Realty Inc.: DHCR Adm. Rev. Docket No. GO210017RO (8/8/19) [4-pg. doc.]