Landlords Can Proceed with Challenge to 2014 Rent Stabilization Code Amendments

Landlords, RSA, CHIP, and other organizations sued the DHCR to challenge the agency's extensive January 2014 amendments to the Rent Stabilization Code, including amendments that established a Tenant Protection Unit (TPU) and use of the TPU to investigate rent increases and issue rulings. Landlords asked the court for a preliminary injunction to stop enforcement of the code amendments while the case was pending and for expedited pretrial questioning. The DHCR, in turn, asked the court to dismiss the case. The court ruled against the DHCR. The court also denied landlords any preliminary injunction but ordered a preliminary conference and expedited discovery on the question of the code amendments' ultimate validity under the separation of powers principle doctrine and whether the TPU violated procedural due process. 

Portofino Realty Corp. v. DHCR: Index No 501554/2014, NYLJ No. 1202675955239 (Sup. Ct. Kings; 11/12/14; Velasquez, J)