Landlord Didn't Prove Horizontal Multiple Dwelling Was Substantially Rehabbed

Landlord asked the DHCR for a ruling that its two adjoining buildings were exempt from rent stabilization based on substantial rehabilitation. The DRA ruled against landlord, finding that landlord failed to demonstrate that 75 percent of building-wide and individual apartment systems (including common areas) had been replaced. DOB records showed that the buildings were each part of a horizontal multiple dwelling (HMD). Also, the scope of work described by the landlord's engineer contradicted the plan for the building filed under a DOB job number. 

Landlord appealed and lost. The DHCR pointed to abundant documentation that the two buildings were a HMD, including a 1984 C of O and a single deed for both buildings. And, even if 100 percent of the building-wide and apartment systems were replaced in one building, landlord made no claim that work was done on the other building that was part of the HMD. Landlord also failed to show that 75 percent of the applicable systems were completely replaced for the building it worked on. And landlord submitted no invoices, contracts, proof of payment affidavit of any person involved in or privy to the actual work at issue, or any other contemporaneous or direct proof of the work claimed except for DOB documentation. Because landlord didn't show complete replacement of any of the 14 applicable systems, the DRA correctly denied landlord's application.

382 8th Avenue Realty Corp. DHCR Adm. Rev. Docket No. LO410003RO (9/22/23)[7-pg. document]