Landlord Fined $47,400 for Illegal Apartment and SRO Units

DOB issued a violation notice to landlord for altering a two-family residence to one occupied by five families. DOB's inspector observed the creation of three SRO units on the first floor of the building and one Class "A" apartment in the cellar. The SRO units each had key-locking devices on the doors, contained personal effects and beds, and shared a communal kitchen and bathroom. The cellar apartment had a full bathroom, kitchen with sink and gas stove, and three bedrooms. The violation stated that DOB was seeking per-day penalties. At a hearing, landlord said that the SRO unit locks had been removed although he was unaware whether the SRO tenants were still there, and that the cellar apartment was now vacant. The ALJ ruled against landlord and fined him $47,400, including per-day penalties.

Landlord appealed and lost. Landlord didn't prove correction of all violating conditions that would toll the per-day penalties, and per-day penalties can continue for 45 days. The violation included tenants illegally residing on the first floor and in the cellar, as well as the illegal installation of partitions and gas lines in the cellar. There was no proof that tenants had moved out and the cellar apartment still existed pending DOB approval and permit applications. So even if the SRO units locks had been removed, that wasn't enough to toll the per-day penalties.

Hernandez: ECB App. No. 170881 (10/5/17) [3-pg. doc.]