Landlord Demolished Building Without DHCR Permission

Landlord asked the DHCR for permission to refuse to renew the leases of eight rent-stabilized tenants so that it could demolish the building. The DRA ruled against landlord, and landlord lost subsequent appeals to the DHCR and to the court through an Article 78 proceeding. The case was sent back to the DHCR and ultimately, since landlord had already demolished the building, the DRA ordered landlord to pay tenants stipends for moving costs totalling $981,453. Landlord appealed and lost. DHCR Operational Bulletin 2009-1 requires a landlord to pay tenant stipends when a demolition application to the DHCR is granted. Here, landlord filed its demolition application with the DHCR after demolishing the building. Landlord can't now deny that it had notice that stipends were required for demolition of a building occupied by rent-stabilized tenants.

128 Hester LLC: DHCR Adm. Rev. Docket No. EM410028RO (6/9/17) [7-pg. doc.]