Landlord Submitted Comparability Data with PAR

Tenant filed a fair market rent appeal in 1987. The DRA ruled for tenant. Landlord appealed, submitting comparability data for the first time with its PAR. The DHCR ruled against landlord and rejected the proof that was submitted with the PAR, because it wasn't submitted to the DRA. Landlord appealed. Landlord pointed out that the rules governing acceptable comparability data changed in 1997 under an amendment to the Rent Stabilization Law. Landlord no longer had to prove that notice of the right to challenge the fair market rent was sent to tenants whose rents were claimed as comparables. Landlord argued that while the case was before the DRA, the old rules applied and it couldn't have submitted the comparables. Landlord also relied on a recent Court of Appeals ruling that landlords must show good cause for why comparables submitted with PARs weren't submitted to the DRA. The DHCR hadn't considered whether landlord showed good cause in this case. The court ruled for landlord and sent the case back to the DHCR for consideration of whether landlord showed good cause for not submitting comparability data until it filed its PAR.

400 East 58th St. Co. v. DHCR: NYLJ, 2/16/05, p. 22, col. 1 (Sup. Ct. NY; Lehner, J)