Landlord Can't Demolish or Alter Building with Rent-Controlled Apartment

Landlord asked the DHCR for permission to evict rent-controlled tenant so that landlord could demolish the building. Landlord stated that it intended to remove or demolish and replace the roof, walls, ceiling and support beams, plumbing, and wiring. The DRA ruled against landlord because landlord didn't show that additional housing units would be added or that the alteration is for the purpose of subdividing an under-occupied apartment containing six or more rooms, as required. Landlord appealed and lost. In its PAR, landlord now claimed that he intended to substantially rehabilitate the building by replacing the roof, installing a heating system, and rewiring the electric. Landlord couldn't seek relief for a different reason on appeal. Landlord's initial application was made under Rent and Eviction Regulations Section 2204.7, which concerned subdividing an under-occupied housing accommodation containing six or more rooms. 

Cirigliano: DHCR Adm. Rev. Docket No. AM120004RO (12/11/12) [2-pg. doc.]