Demolition Application Denied by DHCR

Landlord asked the DHCR for permission to refuse renewal of tenant's lease and proceed for eviction based on building demolition. The DRA ruled against landlord, finding that it hadn't submitted plans for the work at issue, approved by the appropriate government agency, showing that the work constituted a demolition. DOB-approved plans submitted by landlord didn't include removal of the roof and therefore failed to meet the RSC's demolition criteria. The DRA also found that landlord failed to submit adequate proof of financial ability to complete the project as requested. The DRA therefore found that landlord's application showed a lack of good faith intent to complete the demolition.

Landlord appealed and lost. As admitted by landlord, DOB-approved plans didn't show that any portion of the roof of the building would be demolished. Affidavits of the landlord and its architect indicating that the roof would be demolished didn't satisfy the requirements of DHCR Operational Bulletin 2009-1, which specifically requires that there be a sufficient agency-approved plan. The proposal from landlord's general contractor also didn't mention that the roof was part of the demolition work. As to financial ability to complete the project, landlord submitted only a stock brokerage statement, without a firm commitment letter of intent or other acceptable proof from a financial institution holding the funds, as requested by the DRA.  

JM Revocable Trust: DHCR Adm. Rev. Docket No. LM410018RO (9/6/23)[4-pg. document]