Can Landlord Build Garage Below Landscaped Courtyard?

Landlord asked the DHCR for permission to modify the courtyard area of the building complex by building an underground garage under the courtyard and creating new landscaped courtyard service on top of the garage. The DRA denied the application as premature because various government agencies hadn't yet ruled on various aspects of landlord's proposal. The DRA stated that landlord could reapply when this was done. There also was a building-wide rent reduction order in effect since 2000 based on loss of the full courtyard service.

Landlord appealed, claiming that the DHCR should approve the application as submitted by making it contingent upon landlord's obtaining the other needed agency approvals. Tenants also appealed, claiming that landlord's application should be denied outright because it would increase commercial traffic and may never be completed.

The DHCR ruled against both landlord and tenants. Landlord's new application was different from its prior proposals and wasn't barred by prior rejection by the DHCR. But the DRA couldn't make a decision based on current information submitted by landlord because DOB and the Landmarks Preservation Commission (LPC) hadn't yet ruled on landlord's proposal. DOB and LPC records submitted to the DRA by landlord were based on prior proposals that the DHCR had previously rejected. Landlord also would need a highway work permit from the NY Department of Transportation. While the DHCR didn't generally make the granting of an application for modification of services contingent on the prior approval by other agencies, this application was more complicated and involved more construction and safety issues than usual. 

Riverside Tenants' Association/Joralemon Realty LLC: DHCR Adm. Rev. Docket Nos. AW230034RT-AW230038RT/AW230030RO-AW230034RO (3/21/14) [6-pg. document]