Landlord Can't Submit Comparability Data Permitted Under New Law

Facts:Tenant moved into an apartment in 1990 and was the first rent-stabilized tenant after rent control. Her monthly rent was $2,100. Tenant filed a fair market rent appeal that year. The DRA didn't send landlord notice of tenant's complaint for two years. Landlord asked for an answering package and said it intended to submit comparability data. It took the DRA another two years to send landlord the answering package. Landlord didn't submit any comparability data. The DRA ruled for tenant in 1994 and reduced her initial rent to $1,000. Landlord appealed. In 1999, while landlord's PAR was pending, the DHCR notified landlord that it could submit comparability data as permitted by the Rent Regulation Reform Act of 1997. Landlord then submitted comparability data for the first time. The DHCR ruled for landlord, which left tenant owing landlord $47,000 in back rent. Tenant appealed, claiming that the DHCR's decision was arbitrary and unreasonable. The court ruled for tenant. The DHCR appealed and won. Tenant then appealed to the state's highest court. Tenant wins. It was irrational for the DHCR to allow landlord to submit comparability data with its PAR when landlord had never submitted this information to the DRA and never explained why it didn't do so. The DHCR rules don't permit the agency to accept new evidence on appeal.

Gilman v. DHCR: NYLJ, 11/22/02, p. 21, col. 5 (NY Ct. App.; Wesley, J)