DHCR Mistakenly Ordered HDFC Co-op Building to Register as Rent Stabilized

LVT Number: #31020

The DHCR's DRA initiated a proceeding after finding that landlord failed to register its building with the DHCR as rent stabilized for 2018. The DRA's ruling was based on NYC Dept. of Finance (DOF) records, which indicated that the building received J-51 benefits during the fiscal year between July 1, 2017, and June 30, 2018. The DRA notified landlord of the proceeding in April 2019 and gave landlord 20 days to respond. There was no proof in the record that landlord ever answered during that time.

The DHCR's DRA initiated a proceeding after finding that landlord failed to register its building with the DHCR as rent stabilized for 2018. The DRA's ruling was based on NYC Dept. of Finance (DOF) records, which indicated that the building received J-51 benefits during the fiscal year between July 1, 2017, and June 30, 2018. The DRA notified landlord of the proceeding in April 2019 and gave landlord 20 days to respond. There was no proof in the record that landlord ever answered during that time. So, the DRA issued an order in January 2020, directing landlord to register the building. Landlord appealed and won, because landlord showed the building wasn't subject to rent stabilization. In 1988, HPD designated landlord as a qualified and eligible sponsor for construction of low-income cooperative units at the building's location. Landlord was a corporation formed under the Business Corporation Law and organized under Article XI of the New York Private Housing Finance Law. A regulatory agreement also showed that the building was a co-op with units owned by shareholders, with restrictions on renting and subleasing.

105th Street Homesteaders HDFC: DHCR Adm. Rev. Docket No. IM410056RO (9/3/20) [2-pg. doc.]

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