Prior Landlords Weren't Tenants Before Building Rehab

After buying a building in 2007, landlord asked the DHCR for a ruling that the building had been substantially rehabilitated in 2006 and was therefore exempt from rent stabilization. The DRA ruled for landlord in part, finding that two apartments remained rent stabilized because the tenants lived in them before the rehab. Landlord appealed, claiming that the two tenants in question weren't rent-stabilized tenants before the substantial rehabilitation. The DHCR ruled for landlord. Both tenants may have been tenants prior to April 2004, both before and during a period that the City of New York owned the building. But as of April 2, 2004, they were no longer tenants. On that date, ownership of the building was transferred to Synder United Group. Both of the tenants were partners in this owner entity and then officers and shareholders of a newly formed corporation that sold the building to current landlord. Following the transfer of title in 2004, the owner entity that tenants were part of substantially rehabilitated the building over a two-year period. So although tenants lived in the building prior to the rehabilitation, they can't be considered rent-stabilized during that time. As part owners of the building, they ceased to be tenants on April 2, 2004.

Synder Street Estates, LLC: DHCR Adm. Rev. Docket No. VI210014RO (1/31/08) [3-pg. doc.]