Not Enough Work Done to Qualify as Substantial Rehab

Landlord asked the DHCR to determine its building’s rent regulation status. Landlord claimed that the building was exempt from rent stabilization based on substantial rehabilitation. The DRA ruled against landlord, who appealed and lost. Landlord bought the vacant building in 2011 and claimed that it replaced 75 percent of the building’s systems. So landlord was required to replace 11 out of 14 systems. Only nine were replaced, including plumbing, heating, gas supply, electrical, intercoms, windows, exterior surfacing, kitchens, and bathrooms. The roof was not replaced, only capped and patched. The interior stairs were only painted and patched. Not all of the floors in the building were replaced. Some apartment doors were repaired instead of replaced. And ceilings and walls in the common areas weren’t replaced.

River Valley Capital: DHCR Adm. Rev. Docket No. DR910045RO (9/3/15) [9-pg. doc.]