Landlord Fined $60,000 for Illegally Altering Two-Family Dwelling to Six Units

DOB issued violation notices to landlord based on altering a dwelling to more than the legally approved number of families. The Certificate of Occupancy (C of O) permitted a two-family dwelling, but the inspector observed illegal conversion to six occupied dwelling units. Landlord claimed that it had corrected the violations, but the ALJ fined landlord $60,000, including charges for per-day penalties.

Landlord appealed and lost. Landlord claimed that DOB couldn't issue a Class 1 violation of Building Code Section 28-210.1 where the building was a two-family dwelling, the alteration involved three or more additional dwelling units, and DOB's Penalty Schedule didn't address that specific alteration. Landlord also argued that daily penalties were tolled when it removed key locking devices from the added units and obtained vacancies. ECB found that Code Section 28-201.2.1 expressly contemplated two-family dwellings converted for occupancy to four or more families as Class 1 code violations. And the code itself designated the offense of a Class 1 charge with a $15,000 base penalty and subject to additional daily penalties. The daily penalties imposed were legal.

DOB v. CNS Development Inc.: ECB App. No. 19000077 (5/2/19) [4-pg. doc.]