Hotel Reclassified as Apartment Building

January 1, 2004

LVT Number: 17040

The DHCR reclassified landlord's hotel-stabilized building as a rent-stabilized apartment building. The DHCR did so because landlord no longer provided hotel services to more than 51 percent of the units. Landlord appealed and lost. The DHCR correctly included high-rent units in calculating the percentage of units that no longer received hotel services. But the court found that the DHCR hadn't ruled on whether the decision applied retroactively. The DHCR then appealed. The appeals court ruled for the DHCR. The DHCR did rule that its decision applied retroactively.

The DHCR reclassified landlord's hotel-stabilized building as a rent-stabilized apartment building. The DHCR did so because landlord no longer provided hotel services to more than 51 percent of the units. Landlord appealed and lost. The DHCR correctly included high-rent units in calculating the percentage of units that no longer received hotel services. But the court found that the DHCR hadn't ruled on whether the decision applied retroactively. The DHCR then appealed. The appeals court ruled for the DHCR. The DHCR did rule that its decision applied retroactively. This meant that tenants were entitled to refunds for rent overcharge.

Benjamin Shapiro Realty Co. v. DHCR: NYLJ, 12/15/03, p. 28, col. 2 (App. Div. 1 Dept.; Nardelli, JP, Tom, Mazzarelli, Ellerin, JJ)

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