Landlord Seeks Removal of Building from Rental Market

Landlord asked the DHCR for permission to evict rent-controlled tenant based on landlord's intent to withdraw the building from the rental market. The building had been damaged in a fire, and landlord claimed that the cost of restoring it to habitability far exceeded the building's appraised value. The DRA ruled against landlord because, in a related housing court proceeding, the court had ordered landlord to restore the building and restore tenant to possession of his apartment. Landlord appealed, pointing out that the housing court order concerned landlord's obligation to correct outstanding violations. Landlord argued that the issues were different and that the DHCR should have gone ahead and considered landlord's application. The DHCR agreed and sent the case back for a ruling on whether the apartment qualified for removal from the rental market under rent control regulations.

Katz: DHCR Adm. Rev. Docket No. YH220025RO (2/24/11) [3-pg. doc.]