DHCR Must Perform Environmental Impact Review

Landlord applied to the DHCR for permission to evict rent-stabilized tenants so it could demolish its apartment building and put up a new condominium building. Twenty-seven of the tenants brought an Article 78 proceeding against the DHCR while the landlord's application was pending. They asked the court to order the DHCR to conduct an environmental impact review, after the DHCR refused to do so.
The DHCR asked the court to dismiss the case. The agency argued that tenants must wait until the DHCR makes a decision on landlord's application before seeking Article 78 relief. The DHCR also argued that it wasn't the lead agency that would rule on landlord's demolition application, so it wasn't the right agency to conduct the environmental impact review. The DHCR said that it merely had to rule on whether landlord could build the new building under applicable zoning rules. Since this was a ministerial act, the DHCR didn't have to conduct any environmental review. The court ruled against the DHCR. Tenants didn't have to wait for the DHCR to rule on landlord's application to seek a court review of the DHCR's refusal to do the environmental review. In addition, the State Environmental Conservation Law stated that all agencies must prepare an environmental impact statement on any action they propose or approve that may have a significant effect on the environment. So the DHCR was required to do the review. Also, ruling on whether landlord could evict tenants wasn't a mere ministerial act, so there was no exemption from the environmental review requirement for the DHCR.

220 CPS "Save Our Homes" Assoc. v. DHCR: NYLJ, 7/2/08, p. 30, col. 3 (Sup. Ct. NY; Feinman, J)