Landlord Didn't Replace 75% of Building Systems Needed to Prove Sub Rehab

Landlord applied to the DHCR for a ruling that its building was exempt from rent stabilization due to a substantial rehabilitation performed after Jan. 1, 1974. The DRA ruled against landlord, finding that landlord failed to prove that at least 75 percent of all building-wide and individual apartment systems had been replaced.

Landlord appealed and lost. Both landlord's architect and contractor submitted sworn statements with landlord's application, stating that all building systems needed complete replacement. But both the architect and contractor further indicated that many of the systems weren't completely replaced. New "mini splits" for apartment heating systems weren't installed in all apartments. There was no confirmation that the building's windows were replaced. The roof was not completely replaced; instead four new skylights were installed. Fire escapes were repaired and restored rather than replaced. The interior stairway wasn't completely replaced and landlord didn't prove that it was structurally sound and therefore didn't need replacement. Work for one apartment where the tenant was relocated during construction did not include replacement of the ceiling, all walls, or any doors or door frames. 

150 E. Broadway NY LLC: DHCR Adm. Rev. Docket No. KW410008RO (4/3/23)[9-pg. document]