Building Exempt Due to Substantial Rehabilitation

Landlord asked the DHCR to rule on whether its building was rent stabilized. The DRA ruled for landlord, finding that the building was exempt from rent stabilization because it had been substantially rehabilitated. Tenant appealed and lost. Landlord replaced at least 75 percent of the building systems. The building was in a substandard or seriously deteriorated condition in 1979 when the City Health Commissioner issued a vacate order because the building was unfit for human habitation. The building didn't have an elevator, incinerator, or fire escapes, but the interior stairways were structurally sound and didn't need replacement. But landlord showed that it replaced at least 10 of the remaining 13 building systems that the DHCR lists in Operational Bulletin 95-2. Plumbing for the building and apartments, including a new sprinkler system, were replaced. Landlord also replaced the boiler, gas supply, electrical wiring, intercoms, windows, roof, bathrooms, floors, ceilings and wall surfaces, and doors. Landlord also performed pointing and exterior surface repair as needed.

Elouannas: DHCR Adm. Rev. Docket No. CP410034RT (2/18/15) [10-pg. doc.]