DHCR Must Reconsider Landlord's Rent Restoration Application

Tenants complained of a reduction in building-wide services. The DHCR ruled for tenants and reduced their rents based on improper hallway ventilation. Landlord later sought rent restoration based on the restoration of services. The DHCR ruled against landlord twice, finding that the hallway ventilation wasn't restored. The DHCR also denied landlord's two requests for reconsideration. Landlord filed a court appeal, claiming that the DHCR's decision was arbitrary and unreasonable. The court ruled for landlord, finding that the DHCR misinterpreted its inspector's 2009 report. The report didn't contain sufficient information to determine whether the hallways were properly ventilated. Since the inspection was done improperly, the DHCR's denial of landlord's rent restoration application had no rational basis. The case was sent back to the DHCR for further consideration.

2171-2200 Madison Ave. Holdings LLC v. DHCR: Index No. 103949/2010, NYLJ No. 1202474355574 (Sup. Ct. NY; 10/26/10; Gische, J)