Landlord Didn't Replace 75 Percent of Building Systems

Landlord applied for a ruling from the DHCR that its building was exempt from rent stabilization due to substantial rehabilitation. The DRA ruled against landlord, who appealed and lost. Landlord bought the building in 2008, claimed that the building was vacant at that time, and that the substantial rehab took place between September 2008 and September 2009. The DHCR found that the building had 16 of the 17 building-wide and apartment systems specified in Operational Bulletin 95-2. The building had no elevator. Landlord was required to prove it had replaced 75 percent, or 12, of the 16 systems. But landlord proved that only eight systems were replaced or made new--heating, electrical, intercoms, roof, waste compactor, fire escapes, doors, and pointing/waterproofing. Landlord failed to prove that plumbing, gas supply, interior stairways, kitchens, bathrooms, windows, floors, and ceilings/walls were replaced or made new.

Leya LLC: DHCR Adm. Rev. Docket No. DN410001RO (6/22/15) [13-pg. doc.]