Landlord Proves Building Was Substantially Rehabilitated

Landlord asked the DHCR to determine a building’s rent regulatory status. Landlord claimed that the building was exempt from stabilization due to substantial rehabilitation. The DRA ruled for landlord. Tenants appealed and lost. The building was in a substandard and seriously deteriorated condition when the rehab was commenced in 1999. The building also was more than 80 percent vacant at the time. More than 75 percent of the building systems were replaced, including plumbing, heating, gas supply, electric wiring, windows, roof, elevators, interior stairways, kitchens, bathrooms, floors, ceilings and walls, pointing or exterior surface repair as needed,  and doors and door frames. The intercom systems and fire escapes weren’t replaced. Since 14 of the building’s 16 systems were replaced, the building qualified for substantial rehabilitation exemption from rent stabilization.

Sharp: DHCR Adm. Rev. Docket No. DO410034RT (9/28/15) [14-pg. doc.]