Landlord Can't Force Premature Loft Board Determination

Landlord, who owned a building classified as an Interim Multiple Dwelling (IMD) under the Loft Law, sued the Loft Board in connection with Loft Board actions concerning the use and classification of the building. Landlord claimed that the building was a combustible wood-frame structure and that, as a matter of law, it wasn't eligible for residential use or Loft Law coverage. Landlord filed an Article 78 mandamus application seeking to direct its pending decoverage application to the Loft Board for a final order. Landlord also challenged a September 2019 Loft Board determination that denied its appeal of a Loft Board decision to hold its decoverage application temporarily in abeyance.

The court ruled against landlord. As to the mandamus petition, landlord didn't show that it had a clear right to seek a final ruling from the Loft Board at this stage of its application process. The Loft Board had exercised its discretion to initiate an alternate plan dispute application, and tenants had a right to respond. The Loft Board also had reasonably denied landlord's appeal of the order putting the decoverage application on hold, for similar reasons. Tenants had a right to participate in the Loft Board application process, which had not yet been fully provided to them.

470 Manhattan Ave. LLC v. Balsam: Index No. 156349/2019, 2020 NY Slip Op 33863(U)(Sup. Ct. NY; 11/23/20; Crane, J)