Landlord Proves Building Was Substantially Rehabbed in 1984

Landlord asked the DHCR for a determination that its building was exempt from rent stabilization because it had been substantially rehabilitated by prior landlord after Jan. 1, 1974. The DRA ruled for landlord. Tenants appealed and lost. Landlord showed that the building was vacant and substantially deteriorated in 1983 and that the rehab work took place between 1983 and 1984. The architect who supervised the project submitted a sworn statement that a gut rehabilitation took place and submitted various supporting DOB records. Landlord also showed that at least 75 percent of the building-wide and apartment systems had been completely replaced, and that all ceilings, flooring, and wall surfaces in common areas had been replaced. While tenants claimed that landlord's proof was insufficient, landlord showed that 15 of the 17 systems listed in the DHCR's Operational Bulletin were present when the work commenced. Of these, landlord showed that it replaced all but the fire escapes. And while landlord's application for a DHCR ruling was made 30 years after the work took place, there is no time limit on the filing of an application for rent regulation exemption based on substantial rehabilitation.

Cantwell/Sapir: DHCR Adm. Rev. Docket No. FO410066RT, FO410067RT (1/26/18) [8-pg. doc.]