Court Refuses to Grant Mandamus Relief Against DHCR for Ruling on Demolition Application

On March 2, 2021, DOB approved landlord's application to demolish an apartment building. At that time, only one rent-stabilized tenant remained in occupancy. In September 2022, landlord applied pursuant to RSC Section 2524.5(a)(2) for approval from the DHCR to refuse to renew tenant's lease on the grounds of demolition. In May 2023, the DRA requested architectural plans and proof of financial ability to undertake the demolition, which landlord provided. Landlord also claimed that it had submitted this information previously when it filed its application. On Aug. 30, 2023, landlord filed an Article 78 mandamus petition against the DHCR, asking the court to compel the DHCR to make a ruling on its application. Landlord argued that it had been prejudiced by the DHCR's processing delay. The DHCR opposed landlord's mandamus request and argued that landlord wasn't entitled to this relief because the DRA had actively processed landlord's application and a determination on the merits was a discretionary, rather than a ministerial, act. The DHCR also argued that landlord's application was complex and required a thorough review and potential evidentiary hearing to ensure due process was afforded to tenant.

The court agreed with the DHCR and dismissed landlord's petition. Ruling on landlord's demolition application wasn't a "ministerial" act, and the legislature hadn't imposed any time limits on the DHCR for making decisions. The court found it inappropriate to set a time limit on the DHCR to decide landlord's application.

71st St. Props. LLC v. DHCR: Index No. 158627/23, 2024 NY Slip Op 30286(U)(Sup. Ct. NY; 1/23/24; Kim, J)