Landlord Didn't Replace Enough Building Systems for Substantial Rehab

LVT Number: #24499

Landlord asked the DHCR for a ruling on whether the building was exempt from rent stabilization due to substantial rehabilitation. The DRA ruled for landlord, finding that at least 75 percent of the building's systems had been replaced. Tenants appealed and won. The DHCR reversed a number of the DRA's findings. The plumbing system wasn't replaced because only horizontal plumbing was changed and problems with the existing plumbing system remained. Incinerators or waste compactors weren't replaced. The boiler and fire escapes weren't replaced. And, contrary to the building plans, kitchen cabinets, countertops, ranges, and refrigerators weren't replaced. These five systems represented more than 25 percent of the total building systems that should have been replaced to qualify for a finding that the building was substantially rehabilitated. The DRA's ruling was revoked.