Tenants in Occupancy When DOB Issued Sign-Off Remained Stabilized After Substantial Rehab

Landlord asked the DHCR for a ruling that its building was exempt from rent regulation due to substantial rehabilitation after Jan. 1, 1974. The DRA ruled for landlord but stated that all tenants who lived in the building prior to Oct. 7, 2016, remained subject to rent stabilization for as long as they remained tenants in the building. This date was the DOB sign-off date on landlord's rehab job application.

Landlord appealed and lost. Landlord argued that the sub rehab was completed on July 20, 2008, that the building was vacant prior to commencement of the work, that no tenant lived in the building during the work, that none of the prior tenants moved back into the building after the work was finished, and that the Oct. 7, 2016, sign-off didn't state when the work was completed. But the DHCR noted that landlord couldn't legally have started the work that constituted a substantial rehab until Sept. 27, 2016, when DOB issued the required permits and approval of landlord's architectural plans. 

Bruce Marks LLC: DHCR Adm. Rev. Docket No. GW210036RO (7/10/19) [7-pg. doc.]