DHCR Can't Reconsider Case Based on New Memo

Facts: Tenants complained of a reduction in building-wide services in 1990. Tenants claimed that landlord discontinued basement storage space that landlord had provided to them. Landlord claimed tenants weren't authorized to use the space. The DRA ruled for tenants in 1993 and reduced their rents. Landlord appealed by filing a PAR on June 3, 1993. While landlord's PAR was pending, the DHCR issued an internal memorandum dated Nov. 10, 1995, which listed a number of ''de minimis'' conditions for which rent reductions shouldn't be granted. Among these conditions was removal of storage space, unless storage space service is provided for in a specific lease rider or was provided within three years of tenant's complaint. On July 15, 1996, the DHCR ruled against landlord and denied its PAR. Landlord appealed. The DHCR asked the court to allow it to take the case back so it could apply the ''de minimis'' memo. Tenant, who was granted permission to join in the case, argued that the DHCR shouldn't be allowed to take the case back to apply a new policy to a case that had been long pending. Court: Tenant wins. It would be unfair to permit the DHCR to take years to decide a PAR and then to apply rules enacted years after the filing of the PAR. The DHCR's request to take the case back was denied, and the DHCR was granted more time to answer landlord's appeal.

Hakim v. DHCR: NYLJ, p. 25, col. 4 (3/18/98) (Sup. Ct. NY; Braun, J)