"Matter of Promenade Nelson Apts. LLC v. New York State Div. of Hous. &"
 

Case Type

Overcharge

Housing Type

Rent Stabilized

Court

Appellate Division, First Department

County

New York County (Manhattan)

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

153870/23

Slip Opinion Number

2025 NY Slip Op 03544

Petitioner

Promenade Nelson Apartments LLC

Respondent

New York State Division of Housing and Community Renewal

Judge

Manzanet-Daniels, J.P.; Friedman, J.; Scarpulla, J.; Shulman, J.; Rosado, J.

Decision/Order Date

2025-06-10

Posture

Other

Disposition

Other

Winner

Landlord Substantially Won

Synopsis

In an Article 78 proceeding regarding a Major Capital Improvement (MCI) rent increase, the appellate court reversed a lower court's denial of the landlord's petition. The court held that while DHCR's retroactive application of the HSTPA to the landlord's pending MCI application was rational, the agency failed to establish a rational basis for its determination that certain installations exceeded the scope of necessary work. The matter was remanded to DHCR because the agency also failed to address the merits of the landlord's argument that the disputed costs were required for code compliance.

Keywords

HSTPA Part K; Rational Basis

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