Landlord Has No Approved DOB Filings to Support Substantial Rehab

Landlord applied to the DHCR for a ruling that its building was exempt from rent stabilization due to substantial rehabilitation in 2014-2015. The DRA ruled against landlord, who appealed and lost. A DOB job filing that landlord relied on to support its claim had been revoked by DOB. So landlord couldn't prove that the building systems in question complied with all applicable building codes and requirements. The DRA notified landlord in its order that it could refile its application when it could present sufficient proof that it met the requirements of Operational Bulletin 95-2. Landlord can't rely on a revoked DOB application to support completion of a substantial rehab. Landlord's argument that DOB's revocation of its DOB application had no bearing on the legality of the claimed substantial rehab was incorrect. The written opinion of an architect or engineer, or contractor records stating that the work was completed, is insufficient to satisfy OB 95-2 requirements. Landlord also admitted in its application that it had to continue more work at the building to meet a Type I Alteration as required by DOB. The DRA wasn't required to hold landlord's application open after giving landlord three years to show that it had met the requirements for prove substantial rehab. In addition, DOB issued a partial vacate order in 2019 due to a violation and alleged illegal conversion and occupancy of the cellar. Another 17 DOB violations issued from 2017-2019 relate to building-wide systems that landlord claimed were part of the substantial rehab. 

643 Madison LLC: DHCR Adm. Rev. Docket No. IU210002RO (11/18/20) [8-pg. doc.]