Landlord Didn't Submit Sufficient Proof of Substantial Rehab

The prior landlord of a Westchester County building asked the DHCR in 2019 for a ruling that its Mt. Vernon premises was exempt from rent regulation due to substantial rehabilitation. The DRA ruled against landlord in 2022 because landlord failed to submit additional information requested by the DRA that year, including proof of payment for the work.

New landlord appealed and lost. New landlord pointed out that prior landlord was 98 years old and hearing-impaired, that he had the cancelled checks, and that new landlord needed additional time to obtain and submit the requested information.  The DHCR found that the DRA correctly denied landlord's application. Missing information included not only proof of payment but also an affidavit from the architect who did the work, setting forth the scope of the project and stating that 75 percent of the building-wide systems and all common areas were replaced in accordance with DHCR Operational Bulletin 95-2. As noted by the DHCR, proof of payment was especially important in this case since the work resulted from a fire and the DHCR didn't grant sub rehab applications where the work was funded by insurance proceeds. As to landlord's claim that the DRA should have granted more time to submit additional information, the application was pending before the DRA for over 36 months and adequate time had been granted.

Gorjer and Company, LLC: DHCR Adm. Rev. Docket No. KX910023RO (3/9/23)[3-pg. document]