Landlord Must Pay Moving Stipends to Tenants Based on Room Counts in Initial Rent Registrations

Landlord applied to the DHCR for permission to terminate four rent-stabilized tenancies in its building and proceed for eviction, based on demolition. After a gas explosion in 2015, DOB had ordered evacuation of the entire building. The partially collapsed building was demolished by HPD. Landlord then bought the building in 2017 and combined it with adjacent parcels to construct a new mixed-use building.

The DRA ruled for landlord, finding that it proved good faith intent, undisputed financial ability, and DOB-approved building plans. The DRA directed landlord to pay moving stipends to the tenants who had occupied the former building, based on its finding that each unit had contained seven rooms.

Landlord appealed and lost. Landlord argued that initial DHCR registrations stating that the apartments each contained seven rooms were incorrect. HPD I-cards showed that the apartments each contained five rooms. The DHCR pointed out that its Operational Bulletin 2009-1 states that, when calculating stipends in demolition cases, the number of rooms in an apartment is based on DHCR registrations. So, the DRA correctly relied on DHCR records to find that the apartments had seven rooms. The I-card information therefore didn't matter. The fact that room counts in MCI application proceedings also didn't rely on initial apartment registrations to determine the number of rooms per apartment also didn't matter.

Avenue Second Owner, LLC: DHCR Adm. Rev. Docket Nos. LO410014RO through LO410017RO (6/27/23)[3-pg. documents]