Apartment Illegally Converted to SRO Units

DOB issued multiple violation notices to landlord for altering a residence for occupancy for more than the legally authorized number of families and imposing daily penalties for performing work without a permit. Landlord claimed that the long-term tenant created the conditions without his knowledge. The ALJ found that landlord created three SRO units in a one-family dwelling apartment, two at the loft level of the building and one on the lower level. DOB's inspector also observed installation of water and waste lines for a two-piece bathroom on the lower level and full height partitions erected on the loft level. The inspector also found six or seven unrelated occupants in the apartment and the creation of an additional bedroom. The ALJ ruled against landlord and fined him $55,250, including daily penalties of $3,000 for three days of noncompliance. Landlord appealed and lost. Landlord objected to the daily penalties and generally claimed that he didn't get a fair hearing. But the recording of the hearing showed that landlord expressed no confusion about the proceedings. DOB showed that the apartment was unlawfully divided into three SRO units, each with locked doors. 

DOB v. Yeung: ECB App. No. 2001484 (2/11/21) [4-pg. doc.]