Building Exempt from Rent Stabilization Due to Substantial Rehab

LVT Number: #30107

Tenant asked the DHCR to determine her apartment's regulatory status. She claimed that she was rent stabilized. Landlord claimed that it bought the building in 1989 and then performed a gut rehabilitation of the building. Therefore, landlord argued, the building was exempt from rent stabilization. The DRA issued an interim order in 2017 and stated that tenant must be considered rent stabilized until landlord filed an RS-3 Form with the DHCR seeking a ruling on the building's status, and obtained a determination of deregulation. Landlord appealed.

Tenant asked the DHCR to determine her apartment's regulatory status. She claimed that she was rent stabilized. Landlord claimed that it bought the building in 1989 and then performed a gut rehabilitation of the building. Therefore, landlord argued, the building was exempt from rent stabilization. The DRA issued an interim order in 2017 and stated that tenant must be considered rent stabilized until landlord filed an RS-3 Form with the DHCR seeking a ruling on the building's status, and obtained a determination of deregulation. Landlord appealed. In January 2019, while landlord's PAR was pending, the DRA ruled that the building was exempt from rent regulation based on proof that landlord substantially rehabilitated the building. So, the DRA's prior, interim, order was moot and the PAR proceeding was terminated.

28-208 Para Realty Corp.: DHCR Adm. Rev. Docket No. FQ210005RO (3/20/19) [2-pg. doc.]

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