Fact
Sheet #11 - Demolition
One of the grounds upon which an
owner may end a rent regulated tenancy (rent controlled or rent stabilized)
is where the owner intends to demolish the building. However, in such situations,
the owner must first obtain the approval of The Division of Housing and Community
Renewal (DHCR).
The owner is required to file Form RA-54, "Owner's
Application for Order Granting Approval to Refuse Renewal of Lease and/or
to Proceed for Eviction" with DHCR.
In
New York City, if the building contains rent controlled tenants, before
filing Form RA-54, the owner must also file with DHCR and serve the rent
controlled tenants with Form RC-50 "Report
and Certification To Alter or Demolish Occupied Housing Accomodations." The
RC-50 needs to be filed prior to the submission of plans to the New York
City Department of Buildings.
Owner's
Filing Requirements
An RA-54 application will be rejected and not docketed or accepted for filing,
unless it contains the following documents:
-
Plans that have been reviewed and approved by the
New York City Department of Buildings or other appropriate government
agency outside of New York City.
-
Evidence of financial ability to complete
the project, such as a Letter of Intent or a Commitment Letter from a
financial institution, or other evidence that DHCR determines to be appropriate.
DHCR Application Processing
Once
the RA-54 application is accepted for filing, DHCR will:
-
serve each tenant with a copy of the application
-
review
all tenant responses
-
conduct a hearing, if appropriate
-
issue
a written order granting or denying the application
During the processing of the case:
-
Owners do not have to offer renewal leases, but tenants may remain in
occupancy with no increase in rent.
-
Owners are required to serve tenants with termination
notices, which among other things state "that the tenant shall not
be required to vacate until DHCR has issued a final Order approving the
RA-54 application."
Tenant Protections
-
If the owner's RA-54 application is
granted, the DHCR Order will contain terms relating to relocation stipends,
moving expenses, and will give the tenant a reasonable amount of time
to vacate the apartment.
-
If the owner's application is denied or withdrawn, the DHCR Order will
direct the owner to offer the tenants prospective lease renewals.
-
Orders can be appealed within 35 days. The filing of the appeal (PAR)
stays (freezes) the order.
-
Warrants of eviction must be obtained from a court of competent
jurisdiction.
This Fact Sheet is a summary of this topic. For a detailed discussion, please
refer to:
Operational Bulletin 2009-1, "Procedures Pursuant to the Rent Stabilization Code for the Filing of an Owner's Application to Refuse to Renew Leases on the Grounds of Demolition Implementing Emergency Tenant Protection Regulations (Replaces Operational Bulletin 2002-1)".
Sources:
Tenant Protection Regulations, Sections 2504.4(f), 2507.11
New York City Rent Stabilization Code, Sections 2524.5(a)(2), 2527.11
New York City Rent and Eviction Regulations, Sections 2203.10, 2204.8(c),
2209.8
For
more information or assistance, call the DHCR Rent InfoLine (718-739-6400)
or visit your Borough or County Rent Office.
DHCR
Version 9/09
RGB page updated 8/12/2010
