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

157369/2020

Slip Opinion Number

2025 NY Slip Op 35044(U)

Petitioner

SEADYCK REALTY CO., LLC

Respondent

STATE OF NEW YORK DIVISION OF HOUSING AND COMMUNITY RENEWAL

Judge

Bluth, Arlene P.

Decision/Order Date

2025-12-31

Posture

Pre-answer Motion by Landlord

Disposition

Other

Winner

Landlord Substantially Won

Synopsis

A landlord challenged a DHCR order that reversed a Rent Administrator's decision, invalidating individual apartment improvements (IAIs) due to an alleged identity of interest between the owner and the contractor. The court, in an Article 78 proceeding, found that DHCR's policy statement did not automatically mandate complete invalidation of IAIs based solely on an identity of interest. Instead, it suggested requesting additional proof and disallowing only unsubstantiated costs. The court remanded the case to the Rent Administrator for a new determination, directing scrutiny of the work performed and its value, rather than a blanket disallowance of the rent increase.

Keywords

Identity of Interest Does not Automatically Compel Invalidation of IAIs

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