Substantial Rehabilitation Exemption

Hello All,

I recently purchased a Brownstone that is Rent Stabilized. Fortunately, all of the units in the building were vacant and thus I have no difficult tenancy issues with the building as I know what a nightmare that situation can be. I have also obtained a Certificate of Non-Harassment and am thus preparing to consult a Contractor and Architect about converting the building from its current eleven units down to a three or four family building. However, as the building is vacant I would like to permanently remove it from Rent Stabilization as there is no real need to retain it since there are not tenants currently living there. Someone in the neighborhood told me about the Substantial Rehabilitation Exemption option for buildings, and I have located DHCR Operational Bulletin 95-2, but I’m looking for any advice, pointers, or experiences that anyone in this community may have had with this situation. Have any of you ever applied for, been approved or denied for, or done or heard about anyone who has done a Substantial Rehabilitation of their building in order to obtain this exemption from Rent Stabilization?