Landlord Didn't Prove Sufficient Work Done to Constitute Substantial Rehab

Landlord applied to the DHCR for a determination that its building was exempt from rent stabilization due to substantial rehabilitation done after Jan. 1, 1974. The DRA ruled against landlord, finding that landlord hadn't shown that the building was substandard or 80 percent vacant when the rehabilitation commenced in 2008, as required by DHCR Operational Bulletin 95-2. Although landlord indicated otherwise, the DHCR records showed that the building was fully occupied in 2010. The DRA also found that DOB records showed minor renovations and repairs were made to the building and that landlord failed to submit electrical and mechanical permits, proof of payment and invoices for all systems replaced, and that the scope of work described in an architect's affidavit contradicted DOB job file and description under a DOB Job Number. 

Landlord appealed and lost. The DHCR reviewed the building's rent registration history, which showed that four apartments were occupied prior to commencement of work in 2008, and during at least some of the time before work was completed in 2010. So there could be no finding that the building was 80 percent vacant before the work began. And landlord submitted no proof that the premises was substandard or seriously deteriorated before the work began. Landlord also failed to prove that 75 percent of building and apartment systems had been replaced. DOB documentation also didn't support landlord's claim. Landlord's construction contract also was insufficient to prove a sub rehab. At most, landlord showed that only six of 15 required systems had been replaced at the building. 

Tabak: DHCR Adm. Rev. Docket No. LP210002RO (9/12/23)[11-pg. document]