Building Was Substantially Rehabilitated in 1993

Landlord applied to the DHCR for a determination that its building was exempt from rent stabilization due to substantial rehabilitation. The DRA ruled for landlord. Tenant appealed and lost. Landlord submitted sufficient proof that at least 75 percent of the building-wide and apartment systems had been replaced pursuant to Rent Stabilization Code Section 2520.11(e). Landlord also showed that the building was in a substandard and seriously deteriorated condition following a fire in May 1992, and the building was vacant after that. The only building system not replaced was the fire escape. And the number of apartments increased from 10 to 18. Tenant, who moved into the building 16 years after the substantial rehabilitation, incorrectly relied on claims of defective conditions and building violations issued long after completion of the substantial rehab in 1993.

Perez: DHCR Adm. Rev. Docket No. FP410011RT (1/18/18) [7-pg. doc.]