Landlord Must Pay Relocation Stipend to Tenant Who Vacated Illegal Apartment

Landlord asked the DHCR for permission to refuse renewal of tenant's rent-stabilized lease because landlord wished to withdraw the housing accommodation from the rental market. DOB had issued substantial violations for "fire hazards or conditions dangerous or detrimental to the life or health of the tenant." Removing these violations would cost a substantial amount that was equal or exceeding the assessed valuation of the premises. Tenant moved out of the apartment on May 28, 2017, under a DOB Vacate Order, and DOB hadn't legally certified the apartment for occupancy given the numerous safety hazards involved.

The DRA ruled for landlord in part. DOB's order was based on full-height partitions erected along with plumbing and electrical work in the basement apartment, with insufficient light and ventilation, and no secondary means of egress. The DRA ruled that landlord must comply with Stipend/Relocation requirements set forth in DHCR Operational Bulletin 2009-1. But, since tenant had moved out due to DOB's Vacate Order, landlord was no longer responsible for tenant's moving expenses. Landlord appealed the part of the DRA order directing payment of a relocation stipend to tenant. 

The DHCR ruled against landlord. Landlord pointed to other cases where courts ruled that the DHCR couldn't order a relocation stipend. But in those cases, the apartments weren't rent regulated and there was no landlord-tenant relationship. Even if the basement apartment and tenant's occupancy were otherwise illegal, tenant was rent stabilized as a matter of law. So tenant was entitled to the relocation stipend. 

Ramnarine: DHCR Adm. Rev. Docket No. HO210007RO (2/5/20) [4-pg. doc.]