Insufficient Proof of Substantial Rehab

Tenant complained of a rent overcharge. The DRA ruled for tenant based on landlord's failure to submit any rent history records. The DRA ordered landlord to refund $8,855, including triple damages, and froze tenant's rent because tenant's rent wasn't registered. Landlord appealed, claiming that the building was exempt from rent stabilization. When landlord bought the building in 1986, it was empty due to a fire. Landlord claimed that it substantially rehabilitated the building. The DHCR ruled against landlord. Landlord didn't raise this issue before the DRA, so the DHCR couldn't consider it for the first time on appeal. And even if considered, landlord's claim was too vague. Although a new Certificate of Occupancy for the building was issued by DOB in 1986, there was no proof that landlord had replaced 75 percent of the building systems.

Ditmas Gardens Corp./Kasper Holdings, LLC: DHCR Adm. Rev. Docket No. WG210052RO (8/28/08) [3-pg. doc.]