Landlord Didn't Show That 75 Percent of Building Systems Were Replaced

Landlord asked the DHCR for a ruling that its building was exempt from rent stabilization due to substantial rehabilitation. The DRA ruled against landlord, who appealed and lost. The DRA correctly found that the DOB job documentation didn't show that 75 percent of building systems were replaced. The DOB Job Application stated only that it was for plumbing and general construction and described work to "renovate existing mixed use building, relocate bathrooms and kitchens, no change to use, egress, or occupancy." The DOB documents also contradicted landlord's claim that the work changed the number of apartments from five to six. The DOB Job Permit also stated that landlord wouldn't be "performing work in 50 percent or more of areas of the building" and wouldn't be "demolishing 50 percent or more of the area of the building."  The DHCR stated that, if the work were to replace more than 75 percent of building systems as required, "it would have to involve work in more than 50 percent of the building." DOB Job Application documents also listed far fewer than 75 percent of building or apartment systems that were worked on. Plans that landlord submitted to the DRA didn't include the DOB's Job Number, and the DHCR wouldn't accept new documentation submitted with landlord's PAR that listed that number on landlord's plans.

Melrose 250 LLC: DHCR Adm. Rev. Docket No. KV210009RO (2/10/23)[5-pg. document]