Landlord Illegally Converted Two-Family House to Four SROs

DOB issued a violation notice to landlord for illegally altering a two-family dwelling. DOB's inspector found three SRO units on the second floor of the building. Each unit had key-locking devices, and all had beds, personal items, and toiletries. There was also a fourth room that DOB couldn't gain access to. DOB sought per-day penalties for the violation. Landlord claimed that the second-floor apartment was leased to four students who maintained a common household. Landlord argued that the students didn't live separately and apart. They had all signed a lease for a single second-floor apartment. The ALJ ruled against landlord after a hearing, finding the testimony insufficient to rebut DOB's case. The ALJ fined landlord $47,400, which included per-day penalties for the maximum of 45 days. Landlord appealed and lost. The New York City Building Code defined a family to include not more than three unrelated persons occupying a dwelling unit and maintaining a common household. It further defined a common household to exist if all household members had access to all parts of the dwelling unit. Landlord argued that the room door locks, by themselves, didn't prove that the students rented separated units. But landlord admitted that more than three students lived on the second floor and the door locks blocked access by each student to other parts of the floor.

Leung: ECB App. No. 1101110 (2/16/12) [4-pg. doc.]