DHCR Could Accept New Documents on Appeal

Tenant filed a fair market rent appeal. The DRA ruled for tenant, and landlord appealed, claiming that the DRA hadn't given him a sufficient chance to submit comparability data. Landlord submitted the comparability data with his PAR. The DHCR accepted those documents and modified the DRA's ruling. Tenant appealed, claiming that the DHCR improperly accepted the new documents. The court ruled for tenant and sent the case back to the DHCR for reconsideration. The DHCR appealed, arguing that the agency properly accepted new documents on appeal in this case. The appeals court ruled for the DHCR. The Rent Stabilization Code permits the DHCR to accept proof during a PAR proceeding if it ''could not reasonably have been offered or included'' in the DRA proceeding. In this case the DRA didn't give landlord a chance to submit his complete comparability data before issuing its order. So it was reasonable for the DHCR to permit landlord's submission of those documents with his PAR.

Stern v. DHCR: NYLJ, p. 26, col. 1 (5/14/98) (App. Div. 1 Dept.; Ellerin, JP, Nardelli, Mazzarelli, Andrias, JJ)