Case Type

Overcharge

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

154146/2025

Slip Opinion Number

2025 NY Slip Op 35043(U)

Petitioner

Foxwood Realty LLC

Respondent

New York State Division of Housing and Community Renewal, John F. Quinan

Judge

Reo, Denis

Decision/Order Date

2025-12-30

Posture

Post-answer Motion by Landlord

Disposition

Case Dismissed/discontinued

Winner

Tenant Substantially Won

Synopsis

The landlord initiated an Article 78 proceeding to challenge a DHCR order that granted the tenant's petition for administrative review, finding the tenant was entitled to a permanent preferential rent and overcharges. The court affirmed the DHCR's determination that the original lease's preferential rent clause was ambiguous, and this ambiguity should be construed against the landlord in favor of a permanent preferential rent. Deferring to DHCR's factual findings and credibility assessments, the court upheld that the preferential rent was permanent and that rent increases above Rent Guidelines Board adjustments constituted overcharges. The landlord's petition was denied, and the proceeding dismissed.

Keywords

Pre-HSTPA Permanent Preferential Rent Found; Deference to DHCR Evidentiary Findings; Ambiguous Terms Resolved in Favor of Tenant; Increases on Permanent Preferential Rents Above RGB are Overcharges

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