Tenant in Substantially Rehabilitated Building Can't Claim Rent Overcharge

Tenant complained of rent overcharge in 2023. The DRA ruled against tenant, who appealed and lost. The DHCR had issued a prior order in 2023 finding that tenant's building was exempt from rent stabilization based on substantial rehabilitation. The sub rehab work was completed in 1980, and the building then became temporarily rent stabilized due to the owner's receipt of J-51 tax benefits, which expired in 2012. 

Tenant appealed and lost, claiming that she was overcharged during the time her apartment was rent stabilized between May 2017 and October 2023. The DHCR found that the sub rehab exemption was retroactive to the completion of the work as confirmed by issuance of a new Certificate of Occupancy in 1989. The exemption didn't start when the DHCR issued the sub rehab order. The fact that landlord may have offered rent-stabilized leases to tenant while receiving J-51 benefits didn't confer rent-stabilized status on the exempt apartment. 

Cerimovic: DHCR Adm. Rev. Docket No. MS210023RT (11/5/24)[3-pg. document]