Case Type

Article 78 Proceeding

Housing Type

Rent Stabilized

Court

Appellate Division, First Department

County

New York County (Manhattan)

L&T / Index / Case / Docket / Clerk's Number

158325/24; 158263/24

Slip Opinion Number

2026 NY Slip Op 05900

Petitioner

186 Norfolk LLC

Respondent

New York State Division of Housing and Community Renewal

Judge

Moulton, J.P., Scarpulla, Michael, Hagler, JJ.

Decision/Order Date

2026-10-13

Posture

Post-Judgment Motion by Landlord

Disposition

Judgment for Tenant

Winner

Tenant Substantially Won

Synopsis

The Appellate Division affirmed dismissal of two Article 78 proceedings in which the landlord challenged DHCR's denial of first-rent authorization under Operational Bulletin 95-2. Under the first method, adding 20 square feet from a common-area hallway to a bathroom did not "significantly change the perimeter and dimensions" of the apartment because the standard requires reconfiguration that obliterates the prior apartment's identity — which a minimal square-footage addition cannot accomplish. Under the second method, installing a washing machine in former hallway space did not create a housing accommodation in previously nonresidential space.

Keywords

Article 78; DHCR Decisions Upheld; Minor Apartment Enlargement Does Not Warrant First Rent Increase

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