DHCR Denies Landlord's Demolition Application

Landlord applied to the DHCR for permission to refuse to renew tenants' rent-stabilized leases and/or proceed with evictions for the purpose of fully demolishing its building. The DRA ruled against landlord, who appealed and lost. The DRA ruled against landlord because the plans it filed with DOB showed that the building would remain occupied. This was contrary to the DHCR's definition of demolition, which required, at minimum, the complete gutting of all interior spaces of a building. Landlord claimed that its architectural plans met the definition of demolition. But landlord filed a gut renovation application with DOB on Jan. 22, 2016, which called for, in part, a gut reno of the existing building with no change to use or occupancy. So the DRA reasonably found that this application didn't meet the standard for demolition. It stated that the building would remain occupied during the construction. Landlord also didn't submit to the DRA the Occupied Housing Accommodation Statement filed with DOB, although requested to do so. While landlord claimed its DOB application was later amended, DOB approved the initial application. The occupied housing status during proposed work was critical to the DHCR's resolution of a demolition application. Given the inconsistencies in landlord's documents and proof, it was reasonable for the DRA to determine that landlord's demolition application wasn't filed in good faith.

2 Adelphi Street LLC: DHCR Adm. Rev. Docket Nos. FU210028RO, FU210041RO through FU210045RO (2/9/18) [6-pg. doc.]