Landlord Seeks to Recover Part of Rent-Controlled Tenant's Apartment

Facts:Landlord's building had two underoccupied rent-controlled apartments. Landlord asked the DHCR for permission to recover part of each of the apartments to create an additional new apartment in the building. The DHCR ruled for landlord and issued certificates of eviction. Among other things, the DHCR found that there was no reasonable possibility of landlord earning an 8.5 percent net annual return on the property's assessed value without adding the new apartment. One of the tenants died after the DHCR issued the certificates of eviction. The other tenant appealed the DHCR's ruling, claiming that the circumstances had changed. Court:Tenant wins. The apartment of the tenant who died was now vacancy decontrolled. The DHCR must reconsider whether landlord could now make the 8.5 percent net annual return without adding the proposed new apartment.

Rizzo v. DHCR: NYLJ, 11/6/02, p. 19, col. 1 (Sup. Ct. NY; Shafer, J)