Property Management

A New York City landlord who wants to substantially renovate a rent-stabilized apartment building may use the 'demolition' or 'substantial rehabilitation' exemption from rent stabilization only if:

AThey notify tenants 30 days in advance of renovation
BThey obtain all required permits, meet strict legal standards, and follow proper notice and relocation assistance requirements for displaced tenants✓ Correct
CThe building has been vacant for at least 1 year
DThe renovation costs exceed $50,000 per unit

Explanation

The HSTPA 2019 significantly narrowed the ability to use demolition or substantial rehabilitation to remove apartments from rent stabilization. To demolish or substantially rehabilitate a building such that it qualifies for an exemption, landlords must meet strict legal requirements, obtain all necessary permits, and comply with relocation assistance requirements for displaced tenants. These exemptions are rarely available in practice.

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