Landlord Must Pay Stipends to Tenants Who Died After Being Displaced

Landlord asked the DHCR for permission not to renew rent-stabilized leases and to demolish a rent-stabilized building. In 2010, the DRO ruled that landlord must pay stipends to eight displaced tenants. DOB had ordered the building demolition in 2009 based on landlord's neglect and deterioration of the building. By January 2010, the building had been demolished, before the DHCR decided landlord's application. Landlord appealed the DHCR's decision and lost. But the case was reopened to determine whether landlord had to pay stipends for three tenants who had died.

The DHCR ruled against landlord. Rent Stabilization Code Section 2524.5(a)(2)(ii)(d) states that, if a tenant dies before the DHCR issues a final order granting a demolition application, no stipend is required. But, in this case, the DHCR's final order was issued in 2013, followed by court appeals. The three tenants died in 2015 or 2016. The building was demolished due to landlord's malfeasance long before any of the tenants died, so all the tenants were displaced while still alive. Therefore, the tenants' estates were entitled to the stipends due to tenants as of the date of their displacement.

128 Hester LLC: DHCR Adm. Rev. Docket No. FS410003RP (11/3/17) [6-pg. doc.]