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IN RE: W 54-7 LLC, Petitioner-Appellant, v. NEW YORK STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL, et al., Respondents-Respondents.
Order and judgment (one paper), Supreme Court, New York County (Carol R. Edmead, J.), entered April 19, 2006, which denied petitioner landlord's application to annul the determination of respondent New York State Division of Housing and Community Renewal (DHCR) establishing the legal rent for the subject rent stabilized apartment, and dismissed the petition, unanimously affirmed, without costs.
The statements made by Supreme Court in a prior action brought by petitioner against the tenants for a declaration that the subject apartment is rent stabilized, and seeming to determine the base date, were dicta, not relevant to the issue of stabilized status, not final on the issue of legal rent, inconsistent with the court's acknowledgment that establishment of legal rent was a matter for DHCR, and not binding on DHCR. In establishing the legal rent on petitioner's application under Rent Stabilization Code (9 NYCRR) § 2522.6, DHCR's reliance on a schedule of fair market rents maintained by the Department of Housing and Urban Development was consistent with DHCR's broad equity discretion to issue orders “with due regard for protecting tenants and the public interest against unreasonably high rent increases” (9 NYCRR 2522.7), at least where petitioner's comparables were for apartments that were not subject to rent stabilization and petitioner failed to submit any information as to how the rents for its claimed comparables were calculated (see Matter of Parcel 242 Realty v. DHCR, 215 A.D.2d 132, 134, 626 N.Y.S.2d 758 [1995], lv. denied 86 N.Y.2d 706, 632 N.Y.S.2d 500, 656 N.E.2d 599 [1995]; cf. Matter of Weinreb v. DHCR, 293 A.D.2d 397, 398, 741 N.Y.S.2d 38 [2002], lv. denied 98 N.Y.2d 610, 749 N.Y.S.2d 2, 778 N.E.2d 553 [2002] ). The legal rent was properly made effective as of 30 days after the filing of petitioner's application (9 NYCRR 2522.2), and, given a determination that doubled the rent, it was not arbitrary and capricious for DHCR to direct that arrears be paid over a two-year period (see Matter of Kramer v. DHCR, 306 A.D.2d 172, 760 N.Y.S.2d 838 [2003], lv. denied 2 N.Y.3d 707, 781 N.Y.S.2d 288, 814 N.E.2d 460 [2004] ). We have considered petitioner's other arguments and find them unavailing.
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Decided: April 12, 2007
Court: Supreme Court, Appellate Division, First Department, New York.
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Get help with your legal needs
FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.
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