Trial Must Determine Whether Building Is Exempt from Rent Stabilization

Landlord sued to evict unregulated tenant, claiming that the building was exempt from rent stabilization due to substantial rehabilitation after Jan. 1, 1974. Tenant claimed that he was rent stabilized and asked the court to dismiss the case without a trial. The court ruled for tenant. Landlord appealed, and the case was reopened. DHCR Operational Bulletin 95-2 generally requires that 75 percent of listed building systems be replaced in order to qualify for substantial rehab exemption. There are limited exceptions to that requirement based on, for example, recently installed or upgraded equipment, or required preservation of items for aesthetic or historic reasons. A trial was needed in this case to determine the facts. Landlord also objected to the court's reliance on Operational Bulletin 95-2, but the court noted that the bulletin was in line with Rent Stabilization Code Section 2520.11(e) and had been upheld in prior court decisions.

Heller v. Cooper: Index No. 570646/18, 2018 NY Slip Op 51944(U) (App. T. 1 Dept.; 12/28/18; Ling-Cohan, JP, Gonzalez, Cooper, JJ)