Landlord Replaced Less Than 75 Percent of Building Systems

Landlord applied to the DHCR for a ruling that its building was exempt from rent stabilization due to substantial rehabilitation performed in 2017-2018. Landlord responded to several requests from the DRA for additional information. The DRA ruled against landlord, finding that it hadn't replaced 75 percent of the building-wide and individual apartment systems as required by DHCR Operational Bulletin 95-2.

Landlord appealed and lost. The DHCR noted that, at most, landlord installed new heating, kitchens, bathrooms, windows, doors, door frames, floors, performed exterior pointing, and replaced some walls and ceilings. This work fell far short of the 75 percent requirement. DOB filings described jobs only as capping and removal of 2 1/2 bathrooms and restoring the property to its prior "legal condition," as well as removal of violations. The DOB records and architect's statement also didn't support landlord's claim that plumbing, gas supply lines, and electrical wiring were replaced building-wide.

Nada Inc.: DHCR Adm. Rev. Docket No. HV210224RO (2/24/20) [7-pg. doc.]