Landlord Must Wait for Final DHCR Ruling on Remanded Case Before Filing Appeal

Tenant complained to the DHCR in 2018 of rent overcharge and improper deregulation of his apartment. The DRA ruled against tenant in 2023, finding that the apartment had been vacancy deregulated in 2018 when individual apartment improvements (IAIs) brought the legal regulated rent above the $2,733.75 deregulation threshold in effect at that time. Tenant appealed, and the DHCR denied his PAR in December 2023 but, on its own initiative, later issued a Modified Order on Feb. 1, 2024, reversing the original PAR order. The DHCR found that the apartment was subject to rent stabilization and sent the case back to the DRA to recalculate the overcharge amount. At that point, landlord filed an Article 78 court appeal of the DHCR's remand order. The DHCR claimed that landlord's appeal was premature. The court agreed and dismissed the case. Since the DHCR hadn't yet issued a final determination of the rent overcharge issue, landlord hadn't yet exhausted its administrative remedies and couldn't yet appeal the DHCR's decision.

W. 48th Holdings LLC v. DHCR: Index No. 152377/2024, 2024 NY Slip Op 32839(U)(Sup. Ct. NY; 8/13/24; Goetz, J)