Four Systems Not Sufficiently Replaced

Tenant complained of a rent overcharge. Landlord claimed that the building was unregulated because it had been substantially rehabilitated after Jan. 1, 1974. The DRA ruled for tenant. Landlord appealed and lost. Although landlord did significant work at the building, it didn't qualify as a substantial rehabilitation. DHCR Operational Bulletin 95-2 requires that at least 75 percent of building-wide or apartment systems be completely replaced to qualify. This building had 14 systems, so landlord needed to replace at least 11 of them to meet the 75 percent. But at least four systems in the building weren't sufficiently replaced. No pointing or exterior surface repair work was done. There was no proof that an intercom system was installed. There was no proof that a new roof was installed, and no indication that all windows in the building were replaced.

295 Broadway Realty Co.: DHCR Adm.Rev. Dckt. Nos. RB210028RO & SC210025RO (6/9/04) [4-pg. doc.]