Landlord Didn't Prove Building Had Been Substantially Rehabilitated

Landlord applied to the DHCR for a determination that its building was exempt from rent stabilization based on a substantial rehabilitation performed to replace at least 75 percent of building systems, as required by DHCR Operational Bulletin 95-2. The DHCR ruled against landlord, who then filed an Article 78 court appeal. The DHCR took the case back for reconsideration but then again denied landlord's PAR. Among other things, the DHCR found that landlord failed to prove that the building was in a deteriorated condition because four of the building's six apartments were vacated pursuant to buyout agreements. This showed that the building was habitable when the work began. Landlord's documentation also showed that only eight of the required 15 building systems may have been replaced, which constituted only 53.3 percent of the building systems. [Download PDF of decision here.]

219 Troutman LLC: DHCR Adm. Rev. Docket No. LO210030RO (6/6/23)[15-pg. document]