Landlord Demolished Building Without DHCR Approval

Landlord asked the DHCR for permission to refuse to renew tenant's leases and proceed with eviction in order to demolish a building containing rent-stabilized tenants. Landlord claimed that DOB had ordered landlord to demolish the building immediately. In 2010, the DRA ruled against landlord because landlord already had demolished the building in response to DOB's June 15, 2009, order. The DRA found that landlord had neglected to repair or maintain the building in a safe condition and had improperly terminated the rent-stabilized tenancies by demolishing the building. The DRA ordered landlord to comply with the tenant stipend/relocation requirements of DHCR Operational Bulletin 2009-1.

Landlord appealed, claiming that prior owners neglected the building and that it promptly made significant and substantial efforts to repair after it took over. DOB determined that the building was in imminent danger of collapse and ordered the demolition on an emergency basis. Landlord argued that since the building was so damaged it had no choice but to demolish and wasn't required to relocate tenants. Tenants responded, claiming that landlord knew of the unsafe condition when it bought the building and allowed it to get worse. The DHCR ruled against landlord, who then filed an Article 78 court appeal. The court sent the case back to the DHCR for reconsideration.

The DHCR again ruled against landlord, finding that landlord failed to properly maintain, repair, and protect the structural integrity of the building. The building was demolished without the DHCR's pre-approval. Landlord must pay tenants stipends and relocation costs required under the Rent Stabilization Code.

128 Hester LLC: DHCR Adm. Rev. Docket Nos. ZD410001-08RP, ZD420009RP (10/17/13) [19-pg. doc.]