Demolition Application Denied Because Building Interior Wouldn't Be Fully Gutted

LVT Number: #28635

Landlord applied to the DHCR for permission to refuse lease renewal and proceed for the eviction of five rent-stabilized tenants because it intended to demolish the building. The DRA ruled against landlord, who appealed and lost. The DRA found that landlord's plans didn't meet the DHCR's standard for demolition because "a small sliver up to the third floor" wouldn't be demolished. The DRA also found that landlord's DOB plans were approved based on misinformation since landlord's application to DOB stated that there was no occupied housing.

Landlord applied to the DHCR for permission to refuse lease renewal and proceed for the eviction of five rent-stabilized tenants because it intended to demolish the building. The DRA ruled against landlord, who appealed and lost. The DRA found that landlord's plans didn't meet the DHCR's standard for demolition because "a small sliver up to the third floor" wouldn't be demolished. The DRA also found that landlord's DOB plans were approved based on misinformation since landlord's application to DOB stated that there was no occupied housing. The DRA further found that landlord's refusal to provide information on its future plan for the site meant that there was no properly defined project, no approved architectural plans, no "scope of the project," and no  estimated cost of the project. So the DRA couldn't evaluate the feasibility of the project and landlord's financial ability to complete it. Landlord failed to demonstrate its good faith intent and failed to meet the criteria required under DHCR Operational Bulletin 2009-1. The DHCR also noted that, while the agency had granted demolition applications where the outer walls and structural supports of a building would remain intact, the requirement that the interior of the building be gutted has been consistently maintained. Landlord also didn't provide a Letter of Intent or a Commitment Letter from a financial institution. 

118 Duane LLC: DHCR Adm. Rev. Docket Nos. FU410024 et al. (7/31/18) [7-pg. doc.]

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