Vacant Commercial Building Was Substantially Rehabbed in 1986

Tenant complained of rent overcharge. The DRA ruled for tenant and ordered landlord to refund $8,855 including triple damages. The DRA relied on tenant’s figures to calculate the legal rent because landlord didn’t submit copies of leases or ledgers since the base date, and froze tenant’s rent based on failure to register the apartment since 2004. Landlord appealed and claimed that the building was exempt from rent stabilization because it had been substantially rehabilitated after Jan. 1, 1974. The DHCR ruled against landlord, who then filed an Article 78 court appeal. The court ruled for landlord and sent the case back to the DHCR. The DHCR then ruled for landlord and dismissed the overcharge claim. Landlord proved that the building was exempt from rent stabilization. A 1919 Certificate of Occupancy (C of O) listed the building as commercial, a 1986 C of O showed that six apartments had been created, and landlord bought the building in 1984 when it was an empty brick structure. The deed showed that landlord bought the building from the city and that DOB had plans for total rehabilitation. The overcharge claim was dismissed.

Ditmas Gardens Corp./Jasper Holdings, LLC: DHCR Adm. Rev. Docket No. DU210020RP (2/13/17) [3-pg. doc.]