Tenant Who Lived in Building Before Substantial Rehab Remained Rent Stabilized

Landlord asked the DHCR for a ruling that its building was exempt from rent regulation based on substantial rehabilitation. The DRA ruled for landlord.  DOB approved landlord's application and renovation plans under a job filed in 2014. DOB's Letter of Completion stated that the work related to the application had been completed and signed off on in January 2016. The scope of work described in a sworn statement by landlord's architect indicated that at least 75 percent of all building-wide and apartment systems, including the common areas, had been replaced. There was no indication that landlord received any government financing or tax abatements. Landlord showed that it spent over $493,000 on the rehabilitation. Landlord also claimed that all of the building's six apartments were vacant when it began the sub rehab work.

One rent-stabilized tenant appealed and won. Tenant had answered the DRA's notice of landlord's application and produced documents showing that he had lived in the building since 1982. Since tenant was in occupancy before, during, and after the work, he remained subject to rent stabilization. The other apartments were deregulated because they were at all times vacant. The DRA had overlooked tenant's response when it issued its decision.

Stolpiec: DHCR Adm. Rev. Docket No. JT210044RT (2/10/22)[4-pg. document]