DHCR Didn't Unreasonably Delay Processing Landlord's 2017 Deregulation Application

Landlord filed an application for high-rent/high-income deregulation of tenant's rent-stabilized apartment in 2017. In November 2019, the DRA denied landlord's application based on the June 14, 2019, passage of the HSTPA, which prospectively eliminated high-rent/high-income deregulation.

Landlord appealed and lost. Landlord claimed that it was an error to apply the HSTPA amendments to its application. Among other things, landlord argued that the DHCR delayed processing of its 2017 application. The DHCR noted that the agency had denied landlord's prior 2016 deregulation application for the apartment. That ruling had found that tenant's income didn't reach the deregulation threshold in either 2014 or 2015. Since tenant's 2015 income also was relevant to the 2017 application and would have prevented a finding of deregulation, it was proper for the DRA to have processed landlord's 2016 application before processing the 2017 application. There was no unreasonable delay in processing. Landlord also has no remedy based on any assertion of denial of due process based on DHCR "delay" in processing. Even if there had been a delay, an appeals court had ruled that "the express and explicit command of the legislature shall control." And the DHCR couldn't have predicted the express language of any potential amendment to the law that resulted in HSTPA. The DHCR also noted that no party had a vested right to any remedy under the Rent Stabilization Law and Code.

1700 First Avenue LLC: DHCR Adm. Rev. Docket No. HX410271RO (3/22/22)[6-pg. document]