Was Substantial Rehab Completed After Jan. 1, 1974?

Landlord claimed that three adjoining buildings were exempt from rent stabilization because they were substantially rehabilitated after Jan. 1, 1974. The DRA ruled against landlord, finding that the work was completed before Jan. 1, 1974. Landlord appealed. The DHCR ruled for landlord, agreeing that the substantial rehab was completed after Jan. 1, 1974. Tenants then filed an Article 78 appeal in court, claiming that the DHCR's decision was arbitrary and unreasonable. They claimed that the DHCR didn't fully investigate the facts and erroneously found that a Certificate of Occupancy issued after Jan. 1, 1974, was the best evidence of completion of the work after this date. The DHCR agreed to take the case back for reconsideration. The DHCR ruled that the DRA should hold a hearing and consider whether tenants had moved into the building legally before Jan. 1, 1974.

214-216-218 Tenants Association: DHCR Adm. Rev. Docket Nos. WL210009RP-WL210011RP (1/21/09) [2-pg. doc.]