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October 11, 2007

Any first-hand experiences getting a Cert. of Non Harassment

I am looking to buy a brownstone that is currently an SRO and has one tenant. My accepted offer reflects my expectation to carry the costs for up to 6 months before I can start any work (i.e. the time it will take to obtain a Cert of NH and also to move the tenant out ).

My attorney has explained the process, but I am keen to hear from anyone who has had to do this to ratify my assumptions.

These are the details:

1. According to the seller (and the tenant), the tenant has been the sole occupier for the last 3 years. She has been there for 10 years. This I am told means I don't have to track down any other past tenants though I am not sure how I may be required to prove this.

2. There have been no rejected applications for Cert of NH or any petitions of harassment in the last 3 years. This I am told means that I can put in an application right away.

3. I plan to occupy the property and rent out the basement at market. Owner-occupancy and the fact that the tenant is not over 60 and has not lived there for more than 20 years I am told strengthens my hand in getting the tenant out (in court if necessary) and reduces the amount of any payouts I may make to hasten her exit. At the risk of being flamed, I am also told off-the-record that the fact that I am black (so is the tenant) also strengthens my hand in negotiating her exit (as should it go to court, white landlords evicting minorities are difficult to win).

I am willing to let the tenant stay in place for the time it takes to get the Cert. Of NH (mutually beneficial not altruistic) and also willing to buy her out at a reasonable price instead of going to court and I have a figure in mind, a figure reflected in my offer on the property.

Anyone been there, done that with some experiential advice to give.

Comments

Heartless capitalist pig

Posted by: guest at October 11, 2007 7:40 PM

I think your time frame is way off. We purchased an SRO that was already vacant (all the tenants had died or moved away years before) and it still took more than six months to get the certificate. Having a tenant in there will definitely double that time frame. You still have to post the notices and wait for the whole process to finish. I believe ours, which had absolutely no complications, was started in December and did not clear until the end of July.

And, if you do go to court, just getting a date can be hard because judges had housing issues, and don't want to deal with them. So I suggest you buy your tenant out asap. If you are holding a mortgage, time is really money here, and you will come out ahead if you do this the right way from the beginning.

Posted by: guest at October 11, 2007 8:48 PM

We almost tried something like this, so we did all of the research.

Certificate of NH takes 7-9 months. There are two inspectors for the entire city.

Evicting a tenant through owner occupancy is TOUGH -- tenant can ask for a lease as soon as you put up the certificate of NH. You can't stop that -- they are entitled to it, and you obviously aren't going to move into the tenant's apt as is, and your NH app indicates that you don't have any immediate plans to move into the tenant's apt. Plus you have somewhere else to live. Buy her out and shut her up.

Chances are the bottom floor is rent stabilized as well. Also, it is very hard to do a renovation with a tenant in the ground floor.

Good luck, but it would help if you had more capital.

Posted by: guest at October 12, 2007 12:29 AM

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