Judge upholds 711 WEA fraud challenges, fines owner for false statements

Judge upholds 711 WEA fraud challenges, fines owner for false statements

March 29, 2016
I. GREAT NEWS !!!!! Judge Laura Feiber, the Hearing Officer who conducted the Environmental Control Board hearings on December 31, 2015 and February 4, 2016 on the three fraud violations issued by the Department of Buildings, issued her decision on the charge that the 711 West End Avenue owner made a material false statement on its building permit application, and she found the owner guilty and imposed a penalty of $4,800 for the violation. Here is the last paragraph of Judge Feiber’s lengthy, detailed opinion:
I find that petitioner has credibly established that at the time of violation, respondent had filed this PW-1 that contained a material false statement when it checked the boxes ‘no’ in response to the questions whether “site of the building to be altered or demolished, or the site of the new building to be constructed” (1) one or more occupied dwelling units that would remain occupied during construction, or (2) occupied housing accommodations subject to rent control or rent stabilization.” I find respondent’s arguments disingenuous that the unconstructed part of the project could or should be considered in isolation to what already existed on the same property, the six story building below that is inhabited by rent regulated tenants. Of note is that tenants in the ‘L’ line had already been relocated to make room for an elevator bank that is to extend through the occupied portion of the building in order to service the new construction, which provides clarity about whether there will be an integration of the two structures. There can be no doubt that the tenants living in the building during the course of the new construction will be impacted by this work and should benefit from a tenant protection plan. Respondent’s reading of Paragraph 26 to apply solely to the new construction is at odds with the safeguards to which the existing tenants on the zoning lot directly below during this construction should be provided. Accordingly, I find that respondent knew or should have known that the PW-1 it filed contained a materially false statement and sustain the charge. ECB-approved penalty imposed. 
In addition, Judge Feiber issued a Decision and Order reflecting the Miller Trust’s having waived a hearing and appeal and simply pled guilty to two charges of having filed material false statements when it marked “No” to the box that asked whether the site of the building to be altered or demolished, or the site of the new building to be constructed, contained occupied housing accommodations subject to rent stabilization. Each of those violations incurred a penalty of $4,800, and the Environmental Control Board also imposed fines of $1,500 per violation. Although the total fine of $18,900 may appear minimal in light of the tremendous resources of the owner/developers of the project, this is a great victory, from which we hope new, additional victories will flow. We’ll keep you posted on that. We take particular pride in having filed the fraud challenges that caused the DOB to issue the violations.

Congratulations on the victory! Well done.

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