Housing Type

Rent Stabilized

Court

Supreme Court of the State of New York

County

New York County (Manhattan)

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

150543/2023

Slip Opinion Number

2024 NY Slip Op 30204(U)

Petitioner

Aspenly Co., LLC

Respondent

New York State Div. of Hous. & Community Renewal

Judge

Bannon, Nancy M.

Decision/Order Date

2024-01-25

Posture

Other

Disposition

Case Dismissed/discontinued

Winner

Tenant Substantially Won

Synopsis

Landlord challenged a determination by DHCR denying its application for Major Capital Improvement (MCI) rent increases. HSTPA prohibited MCI rent increases for buildings with 35% or fewer rent-regulated units. Petitioner's building contained 35% or fewer rent-regulated units, making it ineligible for MCI rent increases under HSTPA. Court ruled in favor of DHCR, finding that HSTPA did not have a retroactive effect because it only affected the propriety of a prospective rent increase. Court also rejected petitioner's constitutional arguments, citing Court of Appeals decision in Regina Metropolitan Co. LLC v. New York State Div. of Hous. & Community Renewal, which held that only Part F of HSTPA (relating to rent overcharges) had a potentially retroactive effect. Petitioner failed to demonstrate that DHCR's delay in processing its application was deliberate or negligent, and therefore could not claim that delay was a factor in denial of its application. Petition was dismissed, and DHCR's determination was upheld.

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