DHCR Must Conduct Comparability Study

Landlord asked the DHCR to increase rent-controlled rents in the building based on unique or peculiar circumstances. The DHCR ruled against landlord. Landlord appealed, claiming that the DHCR's decision was arbitrary and irrational. The court and appeals court ruled for landlord. Landlord had shown that there were unique and peculiar circumstances over a 17-year period. Prior landlord had been expelled from the Rent Stabilization Association, the building was mismanaged by a 7-A administrator, and the DHCR and other agencies had issued a number of inconsistent rulings on the status of various apartments in the building. All of this resulted in rent-controlled rents at the building that were substantially lower than rents generally in the same area for similar apartments. The case was sent back to the DHCR, and the DHCR was directed to conduct a comparability study to determine the legal rents.

207 Realty Assocs. LLC v. DHCR: NYLJ, 9/26/02, p. 18, col. 5 (App. Div.1 Dept.; Williams, PJ, Tom, Rosenberger, Friedman, JJ)