DHCR Properly Interpreted Special Guideline

Tenant filed a fair market rent appeal. The DHCR ruled against tenant. Tenant challenged the DHCR's ruling in court, claiming that the DHCR improperly interpreted Special Guideline 26 in setting the fair market rent. The court agreed with tenant and sent the case back to the DHCR to recalculate the rent. The DHCR appealed the court's decision. The appeals court ruled for the DHCR and dismissed tenant's court challenge. There was no conflict between the DHCR's interpretation of Special Guideline 26 and the Rent Control Law. The apartment had been vacated after June 30, 1971, and was subject to rent stabilization, not rent control. The Rent Stabilization Law allows the DHCR to set the fair market rent without considering whether the rent control rent increase eligibility requirements have been met.

Schaper v. DHCR: NYLJ, 10/24/02, p. 19, col. 3 (App. Div.1 Dept.; Tom, JP, Ellerin, Lerner, Rubin, Gonzalez, JJ)