Landlord Proved Substantial Rehabilitation

(Decision submitted by James R. Marino of the Manhattan law firm of Kucker & Bruh, LLP, attorneys for the landlord.) Tenants complained of a rent overcharge. The DRA ruled against tenants based on a prior DHCR ruling that the building was exempt from rent stabilization due to substantial rehabilitation. Tenants appealed and stated their intent to appeal the prior DHCR ruling. The DHCR ruled against tenants. The exemption determination was upheld. Landlord proved that it had replaced at least 75 percent of the building systems, including heating, roof, intercom, interior stairways, ceilings, wall surfaces, and all doors and frames. Based on the final ruling that the building was substantially rehabilitated, there was no basis for any finding of rent overcharge.

Buonaiuto/Diamond: DHCR Adm. Rev. Dckt. Nos. RB410105RT & RB410106RT (12/6/04) [3-pg. doc.]