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

154094/21

Slip Opinion Number

2026 NY Slip Op 00999

Petitioner

Stuyvesant Town-Peter Cooper Village Tenants Association

Respondent

New York State Division of Housing and Community Renewal; BPP St Owners, LLC; BPP PCV Owners, LLC

Judge

Webber, Kapnick, Gesmer, Shulman, Michael

Decision/Order Date

2026-02-19

Posture

Other

Disposition

Judgment for Landlord

Winner

Landlord Substantially Won

Synopsis

The First Department affirmed the Supreme Court's denial of the tenants' Article 78 petition challenging DHCR's grant of Major Capital Improvement (MCI) rent increases for a 2014 intercom replacement. The court deferred to DHCR's interpretation of former Rent Stabilization Code § 2522.4, which allows an MCI increase even within the useful life of an improvement if an MCI increase was not previously granted for that specific improvement. Finding DHCR's long-standing interpretation rational and consistent with precedent, the court concluded that the agency's determination was not arbitrary and capricious.

Keywords

MCIs; Useful Life Of Improvement; Article 78 Denied; Agency Decision Found Not Arbitrary And Capricious

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