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Conversion and Demolition FAQ


Disclaimer: By providing answers to frequently asked questions, the staff of the Rent Guidelines Board attempts to clarify the often complex programs and regulations governing landlord tenant relations in NYC. However, the information provided herein does not represent official policies or opinions of the City of New York or the Rent Guidelines Board nor should this information be used to substitute for advice of legal counsel.


Building demolition - what are tenant relocation benefits?

This depends on whether you are rent controlled or rent stabilized:

If you are rent stabilized the landlord may refuse to renew your lease if s/he seeks in good faith to demolish the building and construct a new one. The landlord must obtain the DHCR’S approval following a hearing. If the DHCR approves the demolition, the owner must pay reasonable moving expenses and a stipend or the owner will be required to relocate the tenant. The DHCR maintains a schedule for compensating tenants in these situations.

If you are rent controlled the landlord must secure approvals for demolition from the DHCR and must show:

  1. that the new building will contain 20% more housing than the demolished building; and
  2. that adequate arrangements have been made to relocate the tenants; and
  3. that all the necessary building permits have been obtained.

If the landlord obtains a certificate of eviction from the DHCR, s/he must provide relocation assistance.

The Rent Regulation Reform Act of 1997 made it easier for landlords to demolish buildings with only a few rent regulated apartments. Below is an excerpt from RRRA-97 that discusses the conditions under which an owner may demolish a regulated building pertaining to the allowable maximum number of occupied units:

"Three or fewer occupied apartments which constitute ten percent or less of the total dwelling units in the building or one occupied apartment if the building contains ten or fewer apartments but only on the conditions that the tenant is provided with the relocation, moving expense, stipend and any other benefits provided under the corresponding provisions of the rent stabilization law of nineteen hundred sixty-nine."

The new law did not change an existing provision of rent stabilization, namely, that if the landlord demolishes a building he/she must provide the tenant with:

"THE RELOCATION, MOVING EXPENSE, STIPEND AND ANY OTHER BENEFITS PROVIDED UNDER THE CORRESPONDING PROVISIONS OF THE RENT STABILIZATION LAW OF NINETEEN HUNDRED SIXTY-NINE."

The actual amount of benefits is not specified in the law. Benefits are determined by the NY State Division of Housing and Community Renewal (DHCR), under an Operational Bulletin, For a complete description of all the steps the owner must follow, take a look at Operational Bulletin 2009-01 on 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. If you have further questions don't hesitate to call the DHCR at (718) 739-6400.

Unregulated tenants are not generally entitled to any benefits.

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If my stabilized building was converted from 6 to 5 units - can I still get a renewal lease?

In general, if the owner converted a six or more unit building to one with five or fewer units, the tenants in occupancy remain under rent regulation. For more information, contact the DHCR at (718) 739-6400.

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My landlord is demolishing my building - what are my rights?

Here are two scenarios:

  1. City Requires Demolition:
    If this is the case you will have to move. The City will not allow an independent analysis of the structure's condition. Before demolition, the City will issue a vacate order. Instructions will be included on the order indicating which agency to contact for questions. If you have any questions about your continuing rights following the vacate order, we suggest you contact a private attorney. You may have rights to relocate back in the building if it is to be repaired or rebuilt.

  2. Owner is seeking demolition to rebuild:
    The law does not allow an owner of a rent regulated building to simply demolish the building, and throw the tenants out. The owner must follow the steps mandated by the NY State Division of Housing and Community Renewal, the state agency that administers the rent laws (DHCR, 718-739-6400 or 212-961-8930). These steps include notification procedures and relocation assistance. See the first question in this section for further information.

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Disclaimer: By providing answers to frequently asked questions, the staff of the Rent Guidelines Board attempts to clarify the often complex programs and regulations governing landlord tenant relations in NYC. However, the information provided herein does not represent official policies or opinions of the City of New York or the Rent Guidelines Board nor should this information be used to substitute for advice of legal counsel.

RGB Page Updated 1/15/2010


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