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ANDREW M.

CUOMO RUTHANNE VISNAUSKAS


Governor Commissioner/CEO

February 2, 2018

Congressmember Nydia Velazquez,


Senator Brian Kavanagh,
Assemblymember Yuh-Line Niou,
Comptroller Scott Stringer,
Public Advocate, Letitia James
Borough President, Gale Brewer

Re: 85 Bowery New York, New York

Dear Congressmember Velazquez, Senator Kavanagh, Assemblymember Niou, Comptroller Stringer,


Public Advocate James and Borough President Brewer:

I am writing in response to your letter of January 26, 2018 regarding 85 Bowery in New York City. New
York State Homes and Community Renewal (HCR), through its Division of Housing and Community
Renewal (DHCR) is committed to enforcing New York’s Rent Laws and protecting all rent-regulated
tenants throughout New York State. We share your concern for the residents of 85 Bowery and the
events surrounding their January 18, 2018 evacuation from the premises.

While DHCR is aware of the facts and circumstances surrounding 85 Bowery, DHCR’s role has been and
continues to be a limited one. 85 Bowery’s landlord and tenants have been engaged in a protracted
dispute regarding the rent-regulated status of its tenants. The related litigation is currently pending
before Justice Kathryn Freed, in Supreme Court, New York County in Bowery 8385 LLC., v. 83-85 Bowery
Tenants’ Association, et al, Index # 152054/16. New York State Courts have concurrent jurisdiction with
DHCR to decide the issue of rent-regulated status and other related issues. The parties here have opted
to put their issues before the Courts, rather than before DHCR.

The Court, in considering this matter, called upon DHCR to provide it with guidance with respect to the
rent-stabilized status of 83 and 85 Bowery, as well as the appropriate application of DHCR’s operational
bulletin regarding substantial rehabilitation (OB 95-2). To formulate its guidance to the Court, DHCR
conferenced the matter with the parties, requested substantive information from the parties, and
reviewed the submissions of each party. On December 20, 2017, DHCR issued an advisory report to the
Court. A copy of that advisory report to the Court is attached hereto. The advisory report contains a
detailed summary of the facts presented, an analysis of the law, and DHCR’s opinion that the subject
buildings are subject to rent stabilization. At this time, the Court has not issued an order directly related
to DHCR’s advisory opinion and the issue of the rent-regulated status of 83 and 85 Bowery remain an
open matter before the Court. In addition to the threshold issue of rent-stabilized status, numerous
other related issues are also pending before the Court.

DHCR will provide assistance to the Court as requested and take appropriate action in circumstances
where the Court does not exercise its concurrent jurisdiction. DHCR’s authority to make any rulings or
provide any remedies with respect to the rights of tenants or occupants of 83 and 85 Bowery are subject
to the determinations of the Court. As a threshold matter, DHCR awaits a determination of the Court
regarding the rent-stabilized status of these units.

Another substantial concern expressed in your letter was the timing of the City inspections and the
January 18th evacuation process. These questions would be more appropriately and more accurately
addressed by the City and its agency representatives. DHCR did not play a role in these events. DHCR’s
Office of Rent Administration (ORA) administers and enforces rent regulations related to the Rent
Control law, the Rent Stabilization law, and the Emergency Tenant Protection Act, intended to protect
rent-regulated tenants in privately-owned buildings. Residents of rent-regulated apartments may
contact ORA by visiting one of our rent offices or by phone through DHCR’s “Rent Info Line” and may file
complaints or requests for administrative determination by ORA.

For the immediate future DHCR will continue to monitor the Court proceeding and will provide
appropriate aid, within its authority, to the Court when requested. Please do not hesitate to contact me
if you have any questions regarding DHCR’s jurisdiction in this matter or if you have any other questions
or concerns that you believe DHCR can properly address.

Very Truly Yours,

Mark F. Palomino
Counsel, DHCR

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Encl: DHCR Advisory Opinion to Court

cc: Maria Torres-Springer, Commissioner NYCHPD, Rick D. Chandler, Commissioner NYCDOB, Marco
Carrion, Commissioner Community Affairs Unit, Office of the Mayor NYC

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