Landlord Submits Plans for New Building

Landlord considered filing an application with the DHCR for permission to evict rent-regulated tenants based on landlord's good-faith intent to demolish the building and build a new one. Landlord asked the DHCR if any rules required landlord to construct the same number of residential units as were contained in the former building or any minimum number of residential units. In an opinion letter, the DHCR said no. Landlord also asked the DHCR if landlord could construct only commercial units in the new building. The DHCR said that since the Rent Stabilization Code was amended in 2000, landlord was no longer required to show that its purpose was to construct a new residential building. The code didn't limit what landlord could do with the lot after demolition. However, landlord must submit proof of its financial ability to complete the demolition and new construction project, with plans approved by the appropriate city agency. Otherwise, the DHCR won't approve the demolition application. The DHCR also pointed out that new Operational Bulletin 2002-1 replaced former Bulletin 96-1 on this topic.

DHCR Opin. Ltr. by Charles Goldstein (10/30/02) [3-pg. doc.]