Appeals Court Upholds DHCR Ruling That Building Was Exempt From Rent Stabilization

May 5, 2021

LVT Number: #31376

In 2012, the DHCR's Rent Administrator determined that landlord's building was exempt from rent stabilization due to substantial rehabilitation that took place in the late 1980s. Tenants appealed, claiming that they were rent stabilized. The DHCR ruled against tenants, who then filed an Article 78 court appeal. The court ruled against tenants, who appealed further, and lost. The DHCR's finding, that the building had been substantially rehabilitated within the meaning of Rent Stabilization Code Section 2520.11(e) and DHCR Operational Bulletin No.

In 2012, the DHCR's Rent Administrator determined that landlord's building was exempt from rent stabilization due to substantial rehabilitation that took place in the late 1980s. Tenants appealed, claiming that they were rent stabilized. The DHCR ruled against tenants, who then filed an Article 78 court appeal. The court ruled against tenants, who appealed further, and lost. The DHCR's finding, that the building had been substantially rehabilitated within the meaning of Rent Stabilization Code Section 2520.11(e) and DHCR Operational Bulletin No. 95-2 was rationally based, and not arbitrary and capricious.

Clark v. DHCR: Index No. 2017-10766, 2021 NY Slip Op 02153 (App. Div. 2 Dept.; 4/7/21; Dillon, JP, Hinds-Radix, Lasalle, Barros, JJ)

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