Landlord Rehabbed Fire-Damaged Building

Tenant complained of a rent overcharge and filed a separate complaint claiming that the building was rent stabilized. The DRA ruled against tenant. The DRA found that the building had been substantially rehabilitated after Jan. 1, 1974. And since tenant didn't live in the building at the time of the rehab, he was exempt from rent stabilization. Tenant appealed, claiming that landlord didn't prove that at least 75 percent of the building's systems had been replaced. The DHCR ruled against tenant. DOB had issued an order to vacate the building after a restaurant fire on the ground floor made every apartment unsafe or uninhabitable. Between 1996 and 1997, landlord replaced, on a building-wide basis, plumbing, the gas supply, electrical wiring, intercom system, windows, interior stairways, floors, ceilings and wall surfaces, bathrooms, kitchens, doors and frames, and did pointing or exterior surface repair as needed. Because landlord replaced 12 of the 15 building-wide or apartment systems, it complied with the 75 percent requirement of Operational Bulletin 95-2.

Unger: DHCR Adm. Rev. Dckt. Nos. RI410054RT & RK410052RT (3/18/04) [4-pg. doc.]