Landlord Can't Add Underground Parking or Replace Courtyard

Landlord asked the DHCR for permission to modify required services by building an underground parking facility four feet below the building complex courtyard, with 105 parking spaces that would be available for monthly rental. Under landlord's plan, vehicle entry and exit from the parking facility would take up 10 percent of the existing courtyard space. Some 100-year-old trees would have to be removed but would be replaced with new trees. The new courtyard would have more green space, and landlord would add new benches, walkways, and plants. The DHCR ruled against landlord, finding that landlord's proposal would result in a decrease in services to tenants and therefore wasn't an adequate substitute for the present courtyard. Landlord then filed an Article 78 court appeal, claiming that the DHCR's decision was unreasonable. The court and appeals court ruled against landlord. The DHCR's decision had a rational basis. The DHCR reasonably determined that evidence in the record showed that the new courtyard would be inferior to the old one, and therefore wouldn't be an adequate substitute service.

Joralemon Realty NY LLC v. DHCR: 2013 NY Slip Op 00489, 2013 WL 361005 (App. Div. 2 Dept.; 1/30/13; Andiolillo, JP, Leventhal, Lott, Austin, JJ)