A planned development site on the Upper East Side is being watched closely by legal experts and developers. A standoff with a rent-stabilized tenant has delayed demolition while the courts decide on the case. The New York State Division of Homes and Community Renewal has refused to give the development firm the go-ahead to decline a rent-stabilized tenant’s lease renewal without first revealing the building plans and proving it has the financial availability to build. Historically the DHCR has asked landlords citing demolition when applying for permission to not renew stabilized leases to submit plans and evidence of financing. While requesting this from owners has become routine, it doesn’t necessarily mean owners are legally required to do so. Owners may only need to establish that they can and will demolish – nothing more. An appeal is likely regardless of who the losing party will be.
Read the full article in The Real Deal