Matter of 826 Marcy Ave., LLC v. State of N.Y. Div. of Hous. & Community Renewal

Synopsis

Appellate Division 2nd Dept affirms Supreme Court dismissal of landlord's Article 78 challenging DHCR's denial of landlord's application to deregulate apartments based on claimed substantial rehabilitation under DHCR Operational Bulletin 95-2. Court holds DHCR's decision has a rational basis and was not arbitrary and capricious. Record supports DHCR's finding that landlord failed to demonstrate building was in a substandard or seriously deteriorated condition and failed to show 75% of systems were totally replaced.