DHCR Approves Landlord's Demolition Application

Landlord asked the DHCR for permission to refuse renewal of tenant's rent-stabilized leases and/or proceed for eviction based on landlord's intent to demolish the building. The DRA ruled against landlord, finding that landlord didn't send tenant a required termination notice within the window period specified in Rent Stabilization Code (RSC) Section 2524.2. The DRA said landlord could re-apply in the future during the window period applicable to an existing lease.

The DHCR denied landlord's petition for administrative review (PAR). Landlord then filed an Article 78 court appeal, and the court sent the case back to the DHCR for reconsideration.

The DHCR then ruled for landlord. RSC Section 2524.2 requires a termination/nonrenewal notice be sent to rent-stabilized tenants between 90 and 150 days before expiration of a tenant's current lease term. DHCR Operational Bulletin 2009-1 states that if a landlord doesn't send a tenant the required termination notice during the window period but can show that such failure wasn't the result of "a willful attempt to evade this obligation" and that landlord has otherwise substantially complied with its obligation to send the notice, the DHCR won't have to terminate a demolition application.

In this case, landlord showed that its actions weren't willful. There was only one remaining tenant in the building, and landlord bought the building after tenant's last lease already had expired. Tenant had been without a lease since 2014, had received landlord's application, and hadn't objected to the application. To hold landlord to a stricter requirement under the circumstances involved would create an undue hardship since the rest of the building was vacant and unrentable. Landlord's application otherwise met the requirements for approval of building demolition. Landlord demonstrated that the project included a gutting of all the interior building space and submitted an architect's statement attesting to the plan along with filed DOB plans and a Tenant Protection Plan (TPP). Landlord also showed proof of current financial ability to complete the project. 

1714 Madison LLC: DHCR Adm. Rev. Docket No. IS210005RP (8/19/20) [5-pg. doc.]