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THE NYS DIVISION OF HOUSING AND COMMUNITY RENEWAL (DHCR) PROPERLY HELD THE APARTMENT WAS RENT-STABILIZED, BUT DID NOT PROPERLY CALCULATE THE RENT OVERCHARGE (FIRST DEPT).

The First Department, reversing (modifying) Supreme Court, determined the NYS Division of Housing and Community Renewal (DHCR) properly found the apartment in question was rent-stabilized, but used the wrong formula to calculate the rent overcharge. The decision is too detailed to fairly summarize here:

Supreme Court correctly denied AEJ’s petition insofar as it seeks reversal of DHCR’s determination that the apartment is rent-stabilized. DHCR’s examination of the apartment’s rental history to determine its regulated status had a rational basis … . DHCR erred, however, in establishing the base date rent by using the last registered rent from 1990 and then adding subsequent rent-stabilized rent increases to bring it up to date as of March 2010. The rent history of the apartment beyond the four year look back should not have been examined to determine the base rent for overcharge purposes … . Rather the base date rent is what [the tenant] actually paid four years prior to the date when [the landlord] filed its request for administrative determination (AD request) with DHCR. Matter of AEJ 534 E. 88th, LLC v New York State Div. of Hous. & Community Renewal, 2021 NY Slip Op 02977, First Dept 5-11-21

 

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