Case Type

Article 78 Proceeding

Housing Type

Rent Stabilized

Court

Supreme Court, Appellate Division, Second Department

County

Kings County (Brooklyn)

Slip Opinion Number

2026 NY Slip Op 05180

Petitioner

826 Marcy Avenue, LLC

Respondent

State of New York Division of Housing and Community Renewal

Judge

Barros, J.P.; Genovesi, J.; Voutsinas, J.; Landicino, J.

Decision/Order Date

2026-09-02

Posture

Post-Judgment Motion by Landlord

Disposition

Affirmed for Tenant

Winner

Tenant Substantially Won

Synopsis

Appellate Division 2nd Dept affirms Supreme Court dismissal of landlord's Article 78 challenging DHCR's denial of landlord's application to deregulate apartments based on claimed substantial rehabilitation under DHCR Operational Bulletin 95-2. Court holds DHCR's decision has a rational basis and was not arbitrary and capricious. Record supports DHCR's finding that landlord failed to demonstrate building was in a substandard or seriously deteriorated condition and failed to show 75% of systems were totally replaced.

Keywords

Article 78; Dismissal of Landlord's Petition Challenging PAR Affirmed; Substantial Rehabilitation; Failure To Demonstrate The Building Was In A Substandard Or Seriously Deteriorated Condition; Failure To Demonstrate 75% Of Systems Were Totally Replaced

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