Separating HMD Buildings Under New Deed Didn't Remove Them from Rent Stabilization

Landlord applied to the DHCR for a determination that tenant's apartment was exempt from rent regulation. The DRA ruled against landlord. Rent Stabilization Code Section 2520.11(d) provides that a building constructed before Jan. 1, 1974, that contained six or more apartments was subject to rent stabilization. This section also provided that a building was deemed to be rent stabilized if it was part of a multiple dwelling complex containing six or more apartments and had common facilities and common ownership with other buildings. Such a building would be part of a "horizontal multiple dwelling" (HMD) even if there were certificates of occupancy issued for one- or two-family dwellings that were part of the HMD.  It was undisputed that  the apartment in question was part of an HMD and the building had been registered for years as rent stabilized. Landlord claimed that the recent sale of the buildings that had been part of the HMD as individual two-family buildings converted the buildings to exempt status. This was incorrect. If, as landlord also claimed, that building complex had been converted through substantial rehabilitation after Jan. 1, 1974, landlord would have to file a separate application with the DHCR seeking a ruling on that question.

Guo: DHCR Adm. Rev. Docket No. LP110013RO (2/2/24)[4-pg. document]