DHCR Reasonably Denied Landlord's Demolition Application

Landlord applied to the DHCR for permission to terminate the leases of rent-stabilized tenants based on landlord's plans to demolish the building. The DHCR ruled against landlord (see LVT #32796), who then filed an Article 78 court appeal for judicial review of the DHCR's decision.

The court ruled against landlord, finding that the DHCR's decision had a rational basis. Landlord's 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. 

Ultimately, the DHCR reasonably determined that landlord's plans didn't indicate that the work involved was a demolition and that financial resources weren't sufficiently earmarked or committed to the proposed project.

JM Revocable Trust v. DHCR: Index No. 160835/2023, 2025 NY Slip Op 30455(U)(Sup. Ct. NY; 2/3/25; Bluth, J)