Landlord's Application Denied

Landlord asked the DHCR for permission to evict rent-stabilized tenants and demolish the building they occupied. Landlord said that it intended in good faith to tear down the existing building and construct a high-rise building containing both retail commercial and residential units. The DRA ruled against landlord. Tenants appealed. The building was part of a horizontal multiple dwelling (HMD). There were rent-controlled tenants in one of the other buildings that was part of the HMD. Tenants claimed that the DRA therefore should have made a ruling stating that their building was subject to the sound housing provisions of the rent-control laws. The DHCR ruled against tenants because they weren't harmed by the DRA's order and therefore had no grounds to appeal. The DRA found that landlord hadn't proved its good-faith intent. Landlord's building plans hadn't been approved by DOB, that there appeared to be no final commitment to any particular building size or configuration, and that landlord hadn't previously completed any construction projects and didn't meet the requirements regarding financial ability to complete the proposed project. Any other issues would have to be addressed in future proceedings between landlord and tenants.

Calamaras: DHCR Adm. Rev. Docket Nos. VC420007RT, VC420008RT (12/6/07) [3-pg. doc.]