Need Help - Converting a 6 family into a 5 family
Hey all. We just bought a 6 family rowhouse in Bushwick as a living/investment solution. It’s been hellish so far, but we have an interesting opportunity now. One of the tenants has moved out, and we have the ability to merge two apartments into one larger one, which would give us much more room. However,…
Hey all. We just bought a 6 family rowhouse in Bushwick as a living/investment solution. It’s been hellish so far, but we have an interesting opportunity now. One of the tenants has moved out, and we have the ability to merge two apartments into one larger one, which would give us much more room. However, I’ve been told that a 6-to-5 conversion is very difficult because it eliminates rent stabilization (which only applies to 6 family or above). Can someone give me more info about a 6-to-5 family conversion, or at least point me in the right direction? Much thanks.
We are in the exact same situation, also in Bushwick. Would you be willing to share your information or experience?
Will be happy to send email address.
Thank you
Guest at 6:51: I am not the OP but I am curious what is incorrect with the posts above, as it’s what I understand to be true(I’ve had conversations with HPD and a lawyer on this exact question before). I thought you could always downsize by taking over space – as long as people aren’t old or disabled – and then do a C of O change.
I am an attorney specializing in rent stabilization. Some of these posts are close to correct, some are way off. The regulations are not all that easy to decipher on your own. I strongly recommend that you consult with an attorney who knows what he/she is doing. Spend a few hundred bucks to save tens of thousands later. Don’t listen to amateurs who are taking, at best, educated guesses. As I am posting anonymously, I obviously have nothing to gain by saying this. Good luck.
To smokeychimp and op
hpd regulations are on the internet
.try there before spending money on an attorney.
You should use an attorney as a last resort.
Let’s use our heads for something other than a hairdryer!
2:45 – the apartment “destabilizes” once the owner-occupier takes over the space. The issue is that HPD applies a lookback period, whereby the owner cannot then rent out the space for some number of months (I’ve forgotten how many) or else risk having it “re-stabilized” (query though how this would ever be proved or enforced; highly doubtful). If you are legitimately taking over the space, this of course should not be an issue. I realize now I spoke too quickly above, as you don’t need to wait for an apartment to turn vacant to take over space as an owner-occupier. You simply need to wait for the lease to come up for renewal – although sometimes they are multi-year – and refuse to renew the existing tenants as long as you (the owner) are taking over the space for personal use. You cannot do this, however, if the tenant is disabled or more than 65 years old, in which case you need to find them equiavalent housing. You should definitely consult HPD and/or an attorney with this speciality, although I’m pretty confident that what I’ve said now and at 1.58 is accurate. HPD has a FAQ telephone number and helpful counselors. Also, there is a rent stabilization association for landlords, which is also helpful for questions.
There is a lot of great expertise on this board. But despite our collective smarts, I would suggest that in this case you are best off getting your advice from a lawyer familiar with HPD regulations, that you have paid (i.e. is professionaly accountable).
How long do you have to live in the owner-occupied apartment before it destablizes?
By changing from a 6 to a 5 family and, importantly, as an owner occupier, you are only de-stabilizing the two apartments that you are combining. You will end up with a 5 family building with 4 units that are rent stabilized and one (yours) that’s market rate. You can then over time destabilize the other units in the same way – on a unit by unit basis, but you need to be living in the units to destabilize as you would take advantage of owner-occupier rule. You basically can’t destabilize an apartment out from under somebody but can destabilize an empty apartment that you are going to live in. Call HPD office or rent stabilization board and ask.
I heard rent stabilization involves a minimum of 3 apartments in a building..
Call rent stabilization association and double check.