Landlord Must Apply to DHCR for Ruling on Substantial Rehab Exemption

Tenants asked the DHCR to determine if their building was subject to rent stabilization. Landlord claimed that the building was exempt due to a substantial rehabilitation that took place after Jan. 1, 1974. Without ruling specifically, the DRA found that the building wasn't proven exempt because landlord hadn't filed an Exemption Application on DHCR Form RS-3 and because a prior opinion landlord got from the DHCR didn't decide the issue. Landlord appealed and lost. Although buildings substantially rehabilitated after Jan. 1, 1974, are removed from rent stabilization as a matter of law, this doesn't remove a requirement that landlord apply to the DHCR for an exemption to confirm the building's deregulated status. There's no time limit for such application, but the DHCR issued Operational Bulletin 95-2 as a point-by-point guide for landlords to follow when applying for this exemption. 

435 Jefferson Avenue Corp.: DHCR Adm. Rev. Docket No. FM210027RO (9/20/17) [5-pg. doc.]