Tenants Remain Rent Stabilized After Vacating Due to Partial Building Collapse

Five tenants complained of a reduction in services after a partial collapse of their building forced them to move out temporarily. The DRA ruled for tenants and reduced their rents to $1.00 per month for as long as their apartments were uninhabitable. Landlord appealed, claiming that it no longer had to renew tenants' rent-stabilized leases. Landlord said that it didn't intend to reconstruct the building. Instead, it was going to build a new building. The DHCR ruled against landlord. Until and unless landlord filed a demolition application that was approved by the DHCR, or an application to remove the entire building from the rental market, the building remained rent stabilized and tenants were entitled to renewal leases.

Speakeasy 86, LLC: DHCR Adm. Rev. Docket Nos. UG410028RO, UG410049RO-UG410052RO (5/25/07) [2-pg. doc.]