Landlord Didn't Refile Application for Exemption Based on Substantial Rehab

Tenant complained of rent overcharge and said that landlord failed to register her apartment. Landlord claimed that it bought the empty building in 2000, following a 1997 fire. In 2005, landlord filed an application with the DHCR to determine that it had substantially rehabilitated the building. In 2007, the DRA issued an order terminating the application without action because landlord failed to submit a new Certificate of Occupancy (C of O). In response to tenant’s overcharge complaint, landlord said that it had retained a new architect and was trying to refile the application. Landlord later asked the DRA to delay ruling on the overcharge complaint because the building was exempt. The DRA ruled for tenant, and ordered landlord to refund $4,520, including interest. The overcharge was based on the fact that landlord had failed to register the apartment. The DRA ordered landlord to file rent registrations for the years 2009-2015.

Landlord appealed and lost. Landlord again argued that the building had been substantially rehabilitated and that it was awaiting a Letter of Completion from DOB. But tenant filed his rent overcharge complaint more than five years after the DRA terminated landlord’s substantial rehab application. There was no legal basis to delay processing of tenant’s overcharge complaint until landlord refiled its application. 

Red Hook Enterprises, Inc.: DHCR Adm. Rev. Docket No. EM210012RO (5/26/16) [3-pg. doc.]