DHCR Demolition Approval Revoked After DOB Invalidated PW1 Application

Landlord applied to the DHCR in 2018 for permission to refuse lease renewals in order to demolish a rent-stabilized building. The DRA ruled against landlord because tenant's lease had expired on June 20, 2014, and landlord didn't send him the required termination notice within the window period specified in RSC Section 2524.2. The DRA stated that landlord could refile its application within the window period of an existing lease. Landlord appealed, claiming that the Rent Stabilization Code allowed for demolition application filing when tenants had expired leases. The DHCR ruled against landlord, who then filed an Article 78 court appeal of the DHCR's decision. The case was sent back to the DHCR for further consideration, and the DHCR then ruled for landlord and granted its demolition application in 2020. 

In 2023, tenant asked the DHCR to reconsider its 2020 order. Tenant claimed that landlord's applications to DOB for approved work plans in connection with the proposed demolition included false certifications that the building contained no rent-stabilized units. Tenant's attorney had advised DOB, leading in May 2022 to DOB inspection and issuance of multiple building violations and a finding that the PW1 application contained material misstatements of fact concerning the building's occupancy status. As a result, landlord withdrew its PW1 effective May 30, 2022, and this invalidated the DHCR's order granting permission to demolish the building. The DHCR granted tenant's request for reconsideration and then revoked its prior order approving demolition. Since landlord had withdrawn DOB-approved demolition plans, and such plans were required for the DHCR's approval of proposed demolition pursuant to Operational Bulletin 2009-1, the demolition application must be denied. 

1714 Madison LLC: DHCR Adm. Rev. Docket No. LO210001RK (4/20/23)[3-pg. document]