Landlord Submitted Insufficient Proof of Building's Substantial Rehab

Landlord asked the DHCR for a ruling that a building was exempt from rent stabilization due to substantial rehabilitation of the building performed after Jan. 1, 1974. The DRA closed the file without a ruling because landlord failed to submit required documentation and said that landlord could refile later with the necessary documentation.

Landlord appealed and lost. Landlord claimed that it didn’t receive the DRA’s request for additional information and that landlord had submitted all the requested documents. But the DHCR stated that, after landlord filed its application, the DRA requested a copy of the building deed, Certificate of Occupancy (C of O), building profile, information on when the construction began and when the rehabilitation was completed, information on any tax abatements, government financing, the nature of rehabilitation work done, photographs of the building, an architect’s affidavit, work contracts, invoices, cancelled checks, work permits, and the total cost of the project.

In response, landlord submitted the deed, an old C of O, various photos, cancelled checks, invoices, and DOB work permit data. The DRA then asked for an architect’s affidavit, work contracts, a letter of completion, work permit details, and DOB inspection reports. Landlord then submitted a list of items installed by a plumbing and heating company, a DOB work permit date and inspection reports, letters from an electrician and an engineer, and DOB electrical application details, and boiler inspection certificate. Landlord never submitted the requested C of O, architect affidavit, or letter of completion. Documents submitted also indicated that landlord had replaced only 13 of 17 systems, fewer than the 75 percent required. So the DRA’s ruling was reasonable.

Cheng: DHCR Adm. Rev. Docket No. EP210017RO (9/20/16) [5-pg. doc.]