Substantial Rehab Completed After Jan. 1, 1974

Landlord asked the DHCR for a ruling that three buildings were substantially rehabilitated and therefore not subject to rent stabilization. The DRA ruled against landlord. The DRA found that the rehab work was completed before Jan. 1, 1974, and therefore the building didn't qualify for exemption from regulation. Landlord appealed, claiming that the DRA was incorrect. The DHCR ruled for landlord and found that the buildings were exempt. New Certificates of Occupancy for the three buildings were issued on March 27, 1974, March 28, 1974, and April 11, 1974, respectively. There was no showing that there was administrative delay at DOB in issuing the C of Os. Landlord submitted documents showing that the buildings were vacant and were completed gutted. Prior landlord obtained a loan in 1970 and filed for J-51 tax benefits. Although landlord applied for the new C of Os in 1973 when the work was more than half complete, the C of Os issued in 1974 stated that the work was completed for the three buildings on March 4, 1974, March 5, 1974, and April 9, 1974, respectively. The buildings were no longer subject to rent stabilization.

President Adams Realty, LLC: DHCR Adm. Rev. Docket Nos. UH210035RO, UH210036RO, UJ210005RO (10/18/07) [5-pg. doc.]