Landlord Didn't Submit Sufficient Proof of Ability to Finance Demolition Project
LVT Number: #32178
Landlord asked the DHCR for permission to refuse renewal of a rent-stabilized lease and proceed for eviction based on its application for approval of building demolition under RSC Section 2524.5(a)(2) and DHCR Operational Bulletin 2009-1. The DRA ruled against landlord. The DRA found that landlord failed to meet the criteria set forth in OB 2009-1 because it failed to submit a firm commitment letter from a financial institution or a bank statement showing a segregated account with sufficient funds to complete the project. The DRA found landlord's proof of funds and proof of ability to complete the project inadequate.
Landlord appealed and lost. Landlord claimed that its application showed sufficient proof of financial ability and that the DRA's three-year delay in ruling on this issue had prejudiced landlord. But the DHCR stated that the fact that the DRA accepted and docketed landlord's application didn't constitute proof of financial ability to complete the proposed project. And the DRA didn't unduly delay in processing landlord's application. It had in fact sent landlord several Requests for Additional Information (RFAIs) and landlord delayed in responding.
East 45th Development LLC: DHCR Adm. Rev. Docket No. JX410038RO (7/22/22)[4-pg. document]