Landlord Didn't Prove Tenant's Apartment Needed for Property Management Business

Facts: Landlord asked the DRA for permission to evict rent-stabilized tenant. Landlord wanted to withdraw tenant's apartment from both the housing and nonhousing rental markets, and use the apartment for its property management and investment business. After a hearing, the DRA ruled against landlord. The DRA found that landlord didn't require the amount of space taken up by tenant's apartment. Also, the space would be used not so much for property management but more for other businesses landlord owned. Moving landlord's offices from Long Island also wasn't deemed a business necessity. The DRA found it was merely a matter of convenience for landlord. It also found that landlord wasn't engaged in the real estate management and investment business. Landlord appealed. DHCR: Landlord loses. Based on all the circumstances, the DRA correctly ruled that landlord didn't prove that it needed the space as a matter of business necessity or that it sought tenant's apartment in good faith. Landlord didn't show that it was engaged in the real estate management and investment business. Also, a vacancy had occurred in a space that met landlord's needs, but landlord didn't use it.

210 West 29th St. Corp.: DHCR Adm. Rev. Dckt. No. PJ420002OE (7/12/04) [10-pg. doc.]