Substantial Rehabilitation is currently the last opportunity for an Owner to deregulate a building. The criteria are spelled out in DHCR Operation Bulletin 95-2 however, the main criteria are as follows: substandard building; 75% of the building and apartment systems are replaced and all of the common area surfaces have been replaced or made as new.

The roadblocks Owners encounter include the following:

  • Is the building in substandard condition?
  • Does a building have systems of historical merit and should not be replaced?
  • What were the circumstances of tenants vacating the premises?

All these issues must be carefully analyzed.

Our office is here to guide you and assess whether or not your building currently meets this criteria, or whether or not you should purchase a building with a planned rehabilitation project after the sale.

Let Us Help

Give us a call at (516) 569-9539 or send us a few details below. We’re ready to help with your challenges.