Tenants Remained Rent Stabilized After Building's Substantial Rehab

Landlord asked the DHCR for a finding that its building was exempt from rent stabilization due to substantial rehabilitation. The DRA ruled for landlord in part. Substantial rehabilitation was completed in 2013 after a building fire that resulted in a 2012 DOB vacate order. But all prior tenants who returned to their apartments after the fire remained rent regulated. Landlord appealed and lost. Rent-stabilized tenants of four apartments received vacate orders from HPD and DOB after the fire. They also filed service reduction complaints with the DHCR, which issued rent reduction orders so that tenants paid $1 per month until they could re-occupy the building. Landlord never appealed the rent reduction orders, which stated that because tenants were displaced by the vacate orders, they were entitled to move back in after their apartments were restored. 

Ip: DHCR Adm. Rev. Docket No. FS210062RO (3/16/18) [5-pg. doc.]