Landlord's Building Work Didn't Qualify as Substantial Rehab

Landlord applied to the DHCR for a ruling on whether its building was exempt from rent stabilization due to substantial rehabilitation. The DRA ruled against landlord, who appealed and lost. Landlord claimed that the building's interior was rebuilt as new between 2008 and 2009, and that 100 percent of the building's systems were replaced. Landlord submitted architectural plans, copies of DOB work permit, application detail, construction photos, cancelled checks, and an engineer's affidavit. The DRA asked landlord to submit a copy of either a new Certificate of Occupancy or Letter of Completion from DOB. Landlord claimed DOB error caused a delay in issuance of either document. The DRA correctly found that the rehab work didn't meet the DHCR's 75 percent system replacement requirement. Landlord's architect stated that the heating distribution system, fire escapes, interior stairways, and roof weren't replaced. DOB records also didn't show electrical wiring replacement. The DRA found that two of the DHCR's 17 listed systems were absent in the building. But five of the 15 remaining items weren't completely replaced, and landlord hadn't obtained a new C of O or Letter of Completion. 

Gates Residence LLC: DHCR Adm. Rev. Docket No. GV210036RO (6/7/19) [6-pg. doc.]