Landlord Must Give Tenant Rent-Stabilized Lease Absent Substantial Rehab Ruling

Tenant complained that landlord failed to offer a proper rent-stabilized renewal lease. The DRA ruled for tenant and ordered landlord to offer a renewal lease, while acknowledging that landlord had a pending court action concerning its claimed substantial rehabilitation of tenant's building.

Both landlord and tenant appealed and lost. Tenant claimed the DHCR's decision shouldn't depend on the court action. Landlord argued that the DRA mistakenly found that the apartment was subject to rent stabilization. Landlord claimed that the building had been substantially rehabilitated after 1974 and was therefore exempt from regulation. But the DRA correctly ruled that tenant's apartment was subject to rent stabilization pending the outcome of a State Supreme Court case where the claimed substantial rehab was at issue. Since the court hadn't been discontinued with no determination made on whether the building had been substantially rehabbed, the DRA's determination remained in place. Landlord could file an application with the DHCR for a ruling on the substantial rehabilitation question. 

White/37 Driggs Avenue LLC: DHCR Adm. Rev. Docket Nos. GS210023RT, GR210020RO (1/8/20) [4-pg. doc.]