Landlord Fined $50,000 for Illegal Conversion of Two-Family Dwelling to Four Apartments

DOB issued violations to landlord for illegally maintaining a four-family dwelling in a two-family house. The NYC Office of Administrative Trials and Hearings (OATH) upheld the violations and imposed civil penalties against landlord totalling $50,000 for this illegal conversion. Landlord appealed OATH's decision and lost. The court found that OATH's determination that landlord maintained the residence for occupancy by more than the legally authorized number of families was supported by substantial evidence, including records, inspection cards, photographs, and testimony from an inspector. The court also found that the $50,000 penalty wasn't disproportionate to the offense of illegal conversion, especially since landlord failed to provide proof of correction for over 15 months after receiving notice of the violation.

Cruz v. NYC Office of Admin. Trials and Hearings: Index No. 515808/21, App. No. 2023-02666 (App. Div. 2 Dept.; 3/5/25; Iannacci, JP, Chambers, Warhit, Golia, JJ)