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3. OWNER RELIEF BEFORE THE DHCR
Question:
What Are Luxury Decontrol Proceedings?
Answer:
Applies to units subject to rent control or rent stabilization. It allows an owner to permanently remove an apartment from regulation under two scenarios. The first is where the unit rents for more than $2,000 a month and the tenant vacates. The second, which requires the filing of an application at the DHCR, is where the unit rents for more than $2,000 per month and the adjusted gross income of the primary occupants of the apartment has been determined to be more than $175,000 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 another if the existing tenant declines the offer.
Question:
What Is A Demolition Application?
Answer:
Where regulated tenants occupy a building that an owner seeks to demolish, 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.
Question:
What Is A Substantial Rehabilitation Exemption Application?
Answer:
An owner can apply to DHCR to exempt a building from 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 from DHCR rent increases from DHCR for building-wide improvements made to the building. When granted, the owner can pass on the costs of the improvements to the regulated tenants and these increases become a part of the rent in perpetuity.
