DOB Can Issue Fire-Safety Violations Without Inspection Where There's Illegal Short-Term Rental

DOB issued four violation notices to landlord, based on failure to provide a fire alarm system for transient use of a building apartment, and failure to maintain a premises in a code-compliant manner. The residential building was zoned for permanent residential purposes only. DOB's inspector investigated an apartment at the building and found three transient guests from Texas renting the apartment for their exclusive use through Airbnb for three days at a rate of $350 per night. The guests stated in response to the inspector's questions that the apartment had neither a fire alarm nor an automatic sprinkler system. But the guests wouldn't admit the DOB inspector into the unit. DOB's building information system (BIS) also showed that landlord never applied for any permits to install the fire systems required for transient use.

After a hearing, the ALJ ruled against DOB in part. While it fined landlord $59,000 for violation of code sections 28-210.3 and 202.1, it dismissed two violations concerning missing fire safety systems since there was no direct DOB observation that they were missing.

DOB appealed and won. The issue was whether DOB could establish violations of Building Code Section 907.2.8 and Code Section 28-201.1 for a landlord's failure to provide fire alarm and automatic sprinkler systems by means other than an apartment inspection. ECB agreed with DOB that it could do so. Once the ALJ found that landlord transiently occupied the apartment, the fire alarm and automatic sprinkler requirements applied. Nothing in the RCNY limited DOB's issuance of its violations here to only direct observations of the missing fire safety systems within the apartment. DOB had previously ruled in another case that an inspector need not actually enter a premises in order to issue ancillary fire-safety violations related to transient occupancy.

Landlord was fined an additional $9,375 for the additional ancillary violations. And the ALJ also properly assessed aggravated penalties for the other violations since landlord had received prior violations for the same conditions within the prior three years.

DOB v. Village KF 516 East 13th LLC: ECB App. No. 2100489 (6/24/21) [4-pg. doc.]