You are here: / / Major Capital Improvement Rent Increase Should Not Have Been Denied in...
,

Major Capital Improvement Rent Increase Should Not Have Been Denied in Its Entirety

In a full-fledged opinion by Justice Renwick, the First Department determined the NYS Division of Housing and Community Renewal’s (DHCR’s) complete denial of a rent increase for a Major Capital Improvement (MCI) to an apartment building was arbitrary and capricious.  In the past, DHCR had denied an MCI rent increase only with respect to a small percentage of all the apartments in the improved building which were experiencing problems (like water damage) after the improvement was complete.  Here the DHCR had denied the increase in its entirety (for all apartments) based upon problems in a small number of apartments.  In noting that the DHCR determination was not supported by any relevant precedent (one aspect of a court’s “arbitrary and capricious” review under Article 78), the First Department wrote:

It is well settled that “[j]udicial review of administrative determinations is limited to whether the determination was affected by an error of law or was arbitrary and capricious or an abuse of discretion… . Further, the Court of Appeals has held that an administrative agency’s determination is arbitrary and capricious when it ” neither adheres to its own prior precedent nor indicates its reason for reaching a different result on essentially the same facts'”… . “[A]n agency that deviates from its established rule must provide an explanation for the modification so that a reviewing court can determine whether the agency has changed its prior interpretation of the law for valid reasons, or has simply overlooked or ignored its prior decision'” … .

When a party mounts an attack upon a decision by DHCR as inconsistent with prior determinations, our task is to examine DHCR’s precedent in similar situations. In those cases where the DHCR has denied an exterior renovation (waterproofing and pointing) MCI rent increase outright in the first instance, this Court has upheld such determinations where the owner failed to prove that the work was necessary and comprehensive… . There is, however, no evidence that the DHCR has ever had a specific policy to deny a rent increase outright in the first instance in the type of situation, as here, where defects (water damage) relating to the improvement are found in a relatively small number of the building’s apartments. Nor does DHCR present any evidence of such policy.  Matter of 20 Fifth Ave, LLC, 2013 NY Slip Op 05434, 1st Dept 7-23-13

 

You might also like
DEFENDANT OUT-OF-POSSESSION LANDLORD WAS NOT RESPONSIBLE FOR MAINTENANCE OF THE STAIRWAY WHERE PLAINTIFF ALLEGEDLY SLIPPED AND FELL (FIRST DEPT).
Class Certification Should Have Been Granted; Plaintiffs Waived Statutory Treble Damages
ROOF OF A PROPOSED BUILDING WOULD NOT BE ACCESSIBLE TO ALL WHO RESIDED ON THE ZONING LOT, THEREFORE THE OPEN SPACE REQUIREMENTS OF THE ZONING RESOLUTION WOULD NOT BE MET BY THE ROOF SPACE, PERMIT ALLOWING CONSTRUCTION OF THE BUILDING SHOULD NOT HAVE BEEN ISSUED (FIRST DEPT).
Application for Certification as NYC School Bus Driver Should Have Been Denied Because of Past Drug Convictions
IN THIS QUI TAM (WHISTLEBLOWER) ACTION THE COMPLAINT SUFFICIENTLY ALLEGED DEFENDANT CAPTIVE INSURANCE COMPANY FILED FALSE TAX RETURNS AND TERMINATED THE WHISTLEBLOWER FOR RAISING HIS CONCERNS WITH HIS SUPERIORS (FIRST DEPT).
CRITERIA FOR DETERMINING WHETHER A PARTY IS A STATUTORY AGENT OF THE OWNER IN LABOR LAW 240 (1) AND 241 (6) ACTIONS EXPLAINED, PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT ON HIS LABOR LAW 240 (1) CAUSE OF ACTION, STEMMING FROM A FALL FROM A LADDER, SHOULD NOT HAVE BEEN DENIED (FIRST DEPT).
CENTURY-OLD ELEVATOR MUST BE REPLACED, DESPITE THE COST AND DESPITE THE APPARENT FACT THAT ONLY ONE OF FOUR TENANTS USED THE ELEVATOR (FIRST DEPT).
Labor Law 241(6) Claim Should Not Have Been Dismissed—Although Claimant Did Not Perform “Labor-Intense Aspects of the Project” His Finance-Related Job Entailed On-Site Inspections

Categories

Sign Up for the Mailing List to Be Notified When the Site Is Updated.

  • This field is for validation purposes and should be left unchanged.

Copyright © 2026 New York Appellate Digest, Inc.
Site by CurlyHost | Privacy Policy

Dismissal of Complaint Was Too Severe a Sanction for Spoliation E-Mail Met All Criteria for a Stipulation of Settlement Including the “Subscribed...