In a recent appellate ruling, Matter of First NY v. DHCR, the Appellate Division ruled that New York State’s DHCR had improperly denied an owner’s application for permission to refuse a rent stabilized tenant’s lease based upon an intention to demolish the building. DHCR had denied the application because, although the owner had established the intention to demolish, the owner had not proven what it intended to build. The owner had proven its intention to demolish, but asserted that proof as to the new building was outside the scope of the application.
For owners considering the demolition route, this holding is a major victory. And, as DHCR considers Code amendments that seem legally suspect, this decision should serve as a significant warning to reconsider.
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Should you have any questions regarding this decision or would like a copy, please do not hesitate to contact your BBG attorney of record or email us at info@bbgllp.com.