Following a plenary trial of the factual and economic claims underlying the declaratory judgment action, Supreme Court found that plaintiff had satisfied the requirements of the rent-control and rent-stabilization provisions that permit an owner to recover possession of the housing accommodations where he has a good-faith intention promptly to demolish the building and construct a new one (Administrative Code § 26-408 [b] [4], [5]; 9 NYCRR 2524.5 [a] [2]). Specifically, plaintiff proved, to the court’s satisfaction, that he had the "financial capability] to accomplish his expressed * * * purpose of demolishing the building and constructing a new [one],” that the mortgagee had no objection to plaintiff’s plans, that plaintiff had provided the notifications required by local zoning regulations, that plaintiff’s stated willingness to offer relocation allowances to evicted tenants appeared to comply with "all applicable legal requirements,” that the cost of removing existing violations would exceed or be substantially equal to the building’s assessed value and that plaintiff’s architect had prepared plans for submission to the Building Department for a new structure containing 40 apartment units, one more than the existing structure contained. Finally, the court found that plaintiff had satisfied the requirements of the Sound Housing Law (L 1974, ch 1022, as amended by L 1975, ch 360, codified at Administrative Code § 26-408 [b] [5]) by demonstrating that there was no "reasonable possibility that [he could] make a net annual return of [8lá%] of the assessed value of the subject property” and that he had not intentionally mismanaged the property in order to impair its ability to earn such a return.