DHCR and TPU Update David B. Cabrera, Esq. Borah, Goldstein, Altschuler, Nahins & Goidel, P.C. 377 Broadway New York, New York 10013 Tel: (212) 965-2544 Fax: (212) 965-2744 dcabrera@borahgoldstein.com June 8, 2016 www.borahgoldstein.com

Topics to be Discussed New DHCR Policies and Publications TPU Update Questions & Answers dcabrera@borahgoldstein.com; (212) 965-2544

New Processing Directive Old Policy MCI Handicapped ramps would only be granted if (1) disabled tenant filed an accessibility complaint or (2) a government agency directed owner to install ramps. • New Policy Accessibility ramps (both interior and exterior) are eligible for MCI Rent Increases dcabrera@borahgoldstein.com; (212) 965-2544

Minimum Requirements Must provide wheelchairs, once in the building with access to all public and common areas Must provide access to elevators and ground floor apartments Must comply with building codes for the construction of accessibility/handicapped ramps dcabrera@borahgoldstein.com; (212) 965-2544

New Operational Bulletin on Improvements Background Applies to Individual Apartment Improvements (“IAI”) in overcharge and agency investigations. Prior policy had been unchanged for 26 years. Immediately supersedes prior policy when ORA/TPU is assessing an owner’s substantiation of improvements. Recent regulatory changes and new forms required owners to provide costs, calculations, and supporting documents in notices to tenants. (riders and deregulation notices). dcabrera@borahgoldstein.com; (212) 965-2544

New Higher Standard of Proof Owner should provide: Cancelled check(s) (front and back) contemporaneous with the completion of the work or proof of electronic payment; Invoice receipt marked paid in full contemporaneous with the completion of the work; Signed contract agreement; and Contractor’s affidavit indicating that the installation was completed and paid in full. dcabrera@borahgoldstein.com; (212) 965-2544

New Higher Standard of Proof Prior Rule Submit one of the above New Rule Submit as many of four listed forms of proof. DHCR reserves right to request additional documents (not limited to four forms of proof). Suggested practice: Take pictures, get affidavit from contractor and keep records! dcabrera@borahgoldstein.com; (212) 965-2544

Lump Sum Costs DHCR will no longer accept a lump sum invoice for more than one item of work. DHCR seeks invoices with itemized breakdowns of expenditures. Failure to itemize could result in denial of all improvements. Policy does not follow Court of Appeal Decision. dcabrera@borahgoldstein.com; (212) 965-2544

Useful Life • Where similar improvements were made, DHCR may require owner to prove that useful life expired. Identity of Interest DHCR may require additional evidence of cost and payment where payments are made to a person or organization who share an identity of interest. Includes owner, agent, contractor, etc. who may have a family tie or financial interest Cash Payments Stricter scrutiny for cash payments over $10,000 DHCR may request evidence of withdrawal/deposit dcabrera@borahgoldstein.com; (212) 965-2544

Helpful Information DHCR has provided list of items that may qualify as an IAI. Professional fees to obtain DOB permits are now an eligible cost. dcabrera@borahgoldstein.com; (212) 965-2544

TPU Update TPU has been expanding their jurisdiction. Owner obtained court order directing TPU to release tenant information that it claimed was confidential. dcabrera@borahgoldstein.com; (212) 965-2544

Questions & Answers dcabrera@borahgoldstein.com; (212) 965-2544

David Cabrera dcabrera@borahgoldstein.com (212) 965-2544 David B. Cabrera is a partner at Borah, Goldstein, Altschuler, Nahins & Goidel, P.C., in the Administrative Division.  He has experience in all types of proceedings before the State Division of Housing & Community Renewal (DHCR), as well as matters before the Department of Housing, Preservation & Development (HPD), the Environmental Control Board, the Department of Buildings (DOB), and the Loft Board. Mr. Cabrera has over twenty-five years of real estate law experience, including eleven years with DHCR in various senior positions. He was DHCR’s Deputy Commissioner for Housing Operations where he oversaw the State’s Section 8, Mitchell-Lama and Public Housing programs. He also served DHCR as General Counsel in the Office of Legal Affairs and Deputy Counsel and Assistant Commissioner in the Office of Rent Administration and specialized in rent stabilization and rent control matters. Prior to joining the DHCR, Mr. Cabrera was in private practice specializing in real estate litigation and transactions.