Schenkman v. Dole

148 A.D.2d 116, 544 N.Y.S.2d 327, 1989 N.Y. App. Div. LEXIS 9388
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJuly 13, 1989
StatusPublished
Cited by5 cases

This text of 148 A.D.2d 116 (Schenkman v. Dole) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schenkman v. Dole, 148 A.D.2d 116, 544 N.Y.S.2d 327, 1989 N.Y. App. Div. LEXIS 9388 (N.Y. Ct. App. 1989).

Opinion

OPINION OF THE COURT

Ellerin, J.

Petitioners, residents of the third-floor unit at the subject premises, 102 West 14th Street, submitted an application to the New York City Loft Board seeking coverage pursuant to Multiple Dwelling Law article 7-C, commonly referred to as the Loft Law, claiming that the premises qualified for protection as an "interim multiple dwelling” (IMD) as defined by [118]*118that statute. At issue on this appeal is the propriety of the Loft Board’s denial of that application.

The criteria necessary for a building to qualify as an "interim multiple dwelling” subject to the Loft Law are set forth in Multiple Dwelling Law §281 (1). Those requirements are that the building (1) was at any time occupied for manufacturing, commercial, or warehouse purposes; (2) lacks a certificate of compliance or occupancy as a multiple dwelling pursuant to Multiple Dwelling Law § 301; (3) was occupied during the "window period”, April 1, 1980 through December 1, 1981, for residential purposes by three or more families living independently; and (4) is located in a zoning area which permits residential use.

In the instant case, the inquiry at the hearing before the Loft Board was whether the petitioners’ building met these criteria. Uncontroverted documentary evidence established three of the four necessary elements—that the building was once used for commercial purposes; that the building lacked a certificate of occupancy pursuant to Multiple Dwelling Law § 301; and that the building was located in a C-6 zoning area, which permits residential use as of right. The major issue in contention at the hearing was whether there were three or more families living independently of one another in the premises from April 1, 1980 to December 1, 1981, the "window period”.

The evidence adduced at the hearing indicates that 102 West 14th Street is a four-story building with one unit per floor and that a certificate of occupancy pursuant to Administrative Code of the City of New York § C26-50.0, issued in 1962, provides for a restaurant on the first floor, a private card club on the second floor, and one residential apartment each on the third and fourth floors. Substantial evidence was presented to establish that both the third and fourth floor units were residentially occupied during the "window period”, the third floor by the petitioners, and the fourth floor by other parties. Much of the hearing focused on the nature of the occupancy of the second floor unit during that period, i.e., from April 1, 1980 through December 1, 1981. One Michael Goldberg testified that he resided there from May 1979 until January 1982, when he moved out. Substantial documentary evidence was introduced to support his testimony, including voter registration cards and the like, and, ironically, legal papers issued in connection with two summary nonpayment of rent proceedings brought against Mr. Goldberg during this [119]*119period, in which the landlord alleged that the premises were used as a dwelling.

The Loft Board thereafter issued its determination in order No. 692. The Board expressly found that the petitioners and their witnesses were credible, and that it was proven by substantial evidence that three units had been independently occupied residentially throughout the window period, and that the premises otherwise met the requirements of an interim multiple dwelling pursuant to Multiple Dwelling Law § 281 (1) and (2). However, an additional finding was made by the Board, that on June 21, 1982, the date of the enactment of the Loft Law, the second floor unit had reverted to commercial use, thereby putting the building back in compliance with its certificate of occupancy, and that, as a consequence, the building did not merit coverage under the Loft Law. The petitioners’ administrative application for reconsideration of this decision was denied in pertinent part.

Petitioners thereafter timely commenced this CPLR article 78 proceeding to challenge the Board’s determination. The IAS court adopted the reasoning of the Loft Board and denied and dismissed the petition. The court, as did the Loft Board, focused upon the 1962 certificate of occupancy issued pursuant to Administrative Code § C26-50.0, which permitted residential use of the third and fourth floors and commercial use of the second floor and found that on the date of the enactment of the Loft Law the building was in fact in compliance with its certificate of occupancy since the second floor had reverted to commercial use, and, therefore, the goals of the Loft Law had been achieved.

Petitioners contend that the administrative determination is not supported by evidence in the record, and that it applies an erroneous standard for determining whether the building was an interim multiple dwelling within the meaning of the Loft Law. For the following reasons, we agree with the petitioners’ position and reverse the denial of this article 78 petition.

A review of the record indicates that there is no factual predicate to support the Board’s determination. At the hearing, the inquiry properly focused on the residential occupancy of the second-floor unit during the window period—i.e., April 1, 1980 to December 1, 1981. While it was conclusively established that Mr. Goldberg lived in the unit throughout that period, and that he moved out in January 1982, no further [120]*120evidence was taken with respect to the nature of the occupancy of the unit after his departure. Indeed, when the petitioners’ attorney and the landlord’s attorney, each separately sought to introduce evidence as to the nature of the use and occupancy of the second floor at later dates in 1982, the Hearing Officer excluded such evidence as irrelevant because it was beyond the window period.

It is clear, therefore, that the record contains no evidence whatsoever regarding the status of the second-floor unit on June 21, 1982, and that the Loft Board’s finding that the second-floor unit was commercially used on that date is without any factual underpinning. Yet, the Loft Board’s ultimate determination in this matter was predicated almost entirely upon such a finding. Since this finding of fact, which the Loft Board itself considered crucial, is without any foundation in the evidence, the Loft Board’s determination, on this ground alone, must be held to lack a rational basis requiring that it be annulled. (See, Matter of Sled Hill Cafe v Hostetter, 22 NY2d 607.)

Of even greater significance, however, is the infirmity of the legal basis upon which the Loft Board’s determination is predicated. The nature of the use of the second-floor unit on June 21, 1982 is irrelevant to this proceeding and should not, in any event, have been considered.

The Legislature enacted the Loft Law in 1982 to address the problems created by the conversions of commercial and manufacturing buildings to residential use without compliance with applicable building codes and laws (Multiple Dwelling Law § 280). In enacting the law, a calculated legislative choice was made to limit the law’s applicability to buildings that met the relevant criteria during a precisely delineated time frame. To qualify for "interim multiple dwelling” status the statute requires that on December 1, 1981 there have existed in the building three or more independent residences since April 1, 1980 (Multiple Dwelling Law §281 [1] [iii]).

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Cite This Page — Counsel Stack

Bluebook (online)
148 A.D.2d 116, 544 N.Y.S.2d 327, 1989 N.Y. App. Div. LEXIS 9388, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schenkman-v-dole-nyappdiv-1989.