DHCR Violated Own Rules by Accepting Late Comparability Data

Facts: Tenant filed a fair market rent appeal, challenging the first rent-stabilized rent for the apartment. The DRA ruled for tenant, and landlord appealed. Several years after landlord filed its PAR, the DHCR asked landlord to submit comparability data, largely without notice to tenant. The DHCR then ruled for landlord in part, increasing the fair market rent based on comparability data. The result, after so many years, was that tenant owed landlord $47,000 in back rent. Tenant appealed. Court: Tenant wins. Landlord hadn't submitted comparability data to the DRA, despite a number of extensions of time to do so. The DHCR generally doesn't permit new proof to be submitted with a PAR. The DHCR violated its own rules by requesting new information from landlord. Also, the extreme nature of DHCR's delay in processing this case was negligent and greatly harmed tenant. So the court revoked the DHCR's decision and sent the case back for recalculation of the fair market rent.

Gilman v. DHCR: NYLJ, 7/26/00, p. 26, col. 2 (Sup. Ct. NY; Stallman, J)