An HPD vacate order removes occupants from all or part of a New York City building, usually because of an illegal conversion or fire or water damage. Displaced tenants typically go to the Red Cross first and then into City shelter placements, frequently private hotels, and the cost of those placements is billed to the property owner every month.
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Why HPD Issues Vacate Orders
The Department of Housing Preservation and Development issues a vacate order when it finds conditions too dangerous for people to keep living in a unit or building. The most common causes are:
- Illegal conversions, such as cellar or basement apartments, or units carved out without permits or a matching Certificate of Occupancy.
- Fire damage that leaves a unit or building unsafe.
- Water damage and related structural or electrical hazards.
What Happens to the Tenants
After a vacate order, displaced tenants are usually helped by the Red Cross in the first days, then placed by the City in shelters, often in private hotels. Those placements can continue for months.
Why the Cost Follows the Property
The City bills the owner for the cost of relocating and housing tenants displaced by the vacate order. Those charges run monthly, and they can become a lien on the property. Because the lien is often not recorded until months later, a building can look clean on a standard search while thousands of dollars in billing is building up. That is how buyers end up inheriting someone else’s hotel bill.
What Owners Can Do
- Correct the conditions behind the order and work toward having it lifted.
- End the billing when the owner is no longer responsible. There is a procedure to notify HPD of that date. See how an owner stops being billed for an HPD-placed tenant.
- Before buying, order a pre-purchase search that checks for vacate orders and outstanding relocation billing.
Frequently Asked Questions
What is a vacate order in NYC?
A vacate order is a City order requiring occupants to leave all or part of a building because conditions are unsafe. In residential buildings it is often issued by HPD after an illegal conversion or fire or water damage.
Who pays for tenants relocated after an HPD vacate order?
The City places displaced tenants, often in shelters or hotels, and bills the property owner for the cost. Unpaid charges can become a lien on the property.
Does an HPD vacate order transfer to a new owner?
The order and its related charges attach to the property, not the person. A buyer can take title to a building with an open vacate order and billing that has not yet been recorded as a lien.