DHCR Must Reconsider Landlord's MBR Increase Applications

Landlord of building complex applied for maximum base rent (MBR) increases for 10 rent-controlled apartments. The DHCR ruled against landlord, finding that landlord failed to pay MBR fees. Landlord then filed an Article 78 court appeal, claiming that the DHCR's decision was arbitrary and unreasonable. Landlord argued that the DHCR failed to: (a) provide sufficient "default notices;" (b) dispute landlord's proof that it had tendered checks to pay MBR filing fees; and (c) consider landlord's history of responding to the DHCR's MBR fee notices, which were required by DHCR precedent and applicable law. Landlord claimed that it had mailed checks to the DHCR, and that they simply weren't cashed. Landlord also argued that the DCHR was required to send a second/final set of fee payment notices and failed to do so. The DHCR asked the court to remit the case so that it could further consider landlord's claim. The Court ruled for landlord. Landlord submitted proof that it had sent the MBR fees to the DHCR. So the case should be sent back to the DHCR for a hearing on the merits of landlord's MBR applications.

London Terrace Gardens, LP v. DHCR: 2020 NY Slip Op 31908(U)(Sup. Ct. NY; 6/10/20; Engoron, J)