No Substantial Rehab Where DOB Revoked Work Permit

Landlord asked the DHCR for a ruling that its building was exempt from rent stabilization due to substantial rehabilitation performed in 2003 while the building was at least 80 percent vacant  after a 1999 fire. The DRA ruled against landlord, who appealed and lost.

Landlord had submitted substantial documentation to the DRA, and responded to several requests for additional information. But in December 2007 DOB had revoked a permit previously issued for the entire job. Any work that commenced without an approved DOB work permit violated NYC Construction Codes, unless the work was for minor alterations and ordinary repairs.

The only Letter of Completion issued by DOB for the building was issued in 2010 for the installation of seven boilers and new hot water heaters. There was no Letter of Completion for any sub rehab plan. There also was no indication of the commencement and completion dates of the work in the contractor's statement, managing agent's affidavit, or engineer's affidavit submitted by landlord. And while landlord submitted invoices, cancelled checks, and photographs, there was no proper DOB documentation showing that the work had been completed or done legally. Also, between 2004 and 2010 when the one Letter of Completion was issued, the building never had a vacancy rate of 80 percent or more.

Wilson Gardens, LLC: DHCR Adm. Rev. Docket No. HP210015RO (2/19/20) [9-pg. doc.]