Rents Reduced to $1 per Month

Tenants of 11 rent-stabilized apartments sought rent reductions after a DOB vacate order rendered their units uninhabitable. The DRA ruled for tenants and reduced their rents to $1 per month. The DRA’s orders also stated that tenants were entitled to be restored to occupancy. Landlord appealed and claimed, among other things, that the orders should indicate that landlord wasn’t obligated to rebuild the apartments and that tenants could return only if the apartments were restored, but not if landlord created a new building or apartments. Landlord also objected to language in the orders barring landlord from demolishing the apartments without DHCR approval.

The DHCR ruled against landlord. The DRA properly reduced tenants’ rents because they were unable to live in the apartments under the DOB vacate order. Rent Stabilization Code Section 2524.1 also protected tenants’ right to return to the apartments as long as they continued to pay the reduced rents. And since there was no damage that effectively demolished the building, there was no reason for the DRA to state that landlord wasn’t obligated to rebuild. Finally, landlord can’t withdraw these apartments from the rental market without filing a demolition application with the DHCR.

152 W. 14 Realty LLC: DHCR Adm. Rev. Docket No. XF410018RO (1/22/10) [5-pg. doc.]