Landlord Didn't Prove Building Was Substantially Rehabbed

Landlord asked the DHCR for a ruling that its building was exempt from rent stabilization due to substantial rehabilitation after Jan. 1, 1974. Landlord claimed that the building had been vacant since 1978 and that the rehab work was done recently.

The DRA ruled against landlord, finding that landlord failed to prove that at least 75 percent of the building-wide and individual apartment systems had been completely replaced. Landlord's itemized work list showed partial replacement/repairs of most systems. Landlord's DOB work plan/application stated that the building was and would remain occupied during proposed work. The engineer's affidavit submitted by landlord stated that the job was for renovation done in the cellar only for installation of a new heating system and new gas supply with mechanical room.

Landlord appealed and lost. The DHCR rejected new evidence that landlord tried to submit, including a new architect's affidavit. And it wouldn't have changed the result. Landlord's itemized work list showed that it performed partial repairs and renovations only, falling far short of the replacement of 75 percent of 17 systems listed in DHCR Operational Bulletin 95-2. 

Cook: DHCR Adm. Rev. Docket No. HV410003RK (7/10/20) [10-pg. doc.]