Landlord Claims Building Exempt from Rent Stabilization

Tenant complaint of rent overcharge and stated that landlord hadn’t registered the apartment since 1995. Landlord claimed that the building contained four apartments and wasn’t subject to rent stabilization. The number of apartments was shown in the building’s 1999 Certificate of Occupancy (C of O). Tenant also had signed a settlement stipulation in a housing court nonpayment case, agreeing to pay back rent and move out. The DRO found no overcharge but ruled that the building had six apartments under a new C of O. The DRO directed landlord to register the apartment for the years 2010 through 2014. Landlord appealed, claiming that the building was converted from six apartments to four apartments between 1995 and 1999 due to a substantial rehabilitation of the building. The DHCR ruled against landlord, who then filed an Article 78 court appeal. The case was sent back to the DHCR, who ruled for landlord in part and sent the case back to the DRA to consider whether the building had been substantially rehabilitated.

Johnson: DHCR Adm. Rev. Docket No. EM210004RP (2/23/16) [3-pg. doc.]