3. OWNER RELIEF BEFORE THE DHCR

Question:
What Are Luxury Decontrol Proceedings?

Answer: 
Luxury Decontrol Proceedings apply to units subject to rent control or rent stabilization. It allows an owner to permanently remove an apartment from regulation under two scenarios: (1) the unit rents for more than $2,500 a month, and the tenant vacates and the owner regulates the unit as luxury exempt or (2) upon filing of an application at the DHCR, where the unit rents for more than $2,500 per month and the adjusted gross income of the primary occupants of the apartment is determined to be more than $200,000 for the preceding two years. Upon the issuance of the Order of Deregulation by the New York State Division of Housing and Community Renewal, the unit is removed from rent regulation and the owner may charge a fair market value rental to the existing tenant or if the existing tenant declines the offer, to another tenant.


Question:
What Is A Demolition Application?

Answer: 
A demolition application is one in which the owner seeks to demolish or fully gut renovate a building occupied in whole or part by rent regulated tenants. An application to DHCR for permission not to renew leases (rent stabilized tenants) or permission to evict (rent controlled tenants) must be filed. The owner must show what it intends to build and that it is financially able to meet the costs. If the application is granted the tenants are then compelled to move.


Question:
What Is A Substantial Rehabilitation Exemption Application?

Answer: 
An owner can apply to DHCR to exempt a building from rent regulation where the owner has substantially rehabilitated the building. The owner must replace some 75% of a list of enumerated items and building systems.


Question:
What Is A Major Capital Improvement Application?

Answer: 
An owner may seek  rent increases from DHCR for building-wide improvements. When granted, the owner can pass on the costs of the improvements to the regulated tenants with these increases becoming a permanent part of the rent.