Case Type

Article 78

Housing Type

Rent Stabilized

Court

Appellate Division, Second Department

County

Queens County (Queens)

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

Not Stated

Slip Opinion Number

2026 NY Slip Op 05308

Petitioner

Hillside Place, LLC

Respondent

Housing & Community Renewal of the State of N.Y.

Judge

Francesca E. Connolly, J.P.; Linda Christopher; Barry E. Warhit; Elena Goldberg Velazquez, JJ.

Decision/Order Date

2026-09-16

Posture

Appeal

Disposition

Appeal: Reversed

Winner

Tenant Substantially Won

Synopsis

App Div reverses Supreme Court and reinstates DHCR's determination removing the $45/month RGB #40 increase. The prior Civil Court order granting leave to amend—allowing the owner to add an RGB #40 claim—resolved only that the claim was not palpably insufficient; it decided nothing on the merits, creating no law of the case, res judicata, or collateral estoppel. DHCR's conclusion that the owner failed to preserve the $45 option in the 2008-2009 lease renewal, which instead used a 3% increase, was rational and not arbitrary.

Keywords

Article 78; DHCR; Rent Stabilization; Rent Guidelines Board; Landlord Not Entitled to Rent Increase Not Preserved in Renewal Lease; App Div Reverses Lower Court; DHCR Determination Affirmed

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