Landlord's Comparability Data Accepted to Revoke $50,000 Overcharge

Facts:Tenant filed a fair market rent appeal in 1990, challenging the $2,000 initial rent-stabilized rent for her apartment. The DRA ruled for tenant and ordered a $50,000 rent refund. Landlord appealed, claiming that the DRA didn't give it enough time to submit comparability data, which it submitted with its PAR. The DHCR ruled for landlord, accepted the comparables, and revoked the overcharge finding. Tenant appealed, claiming that the DHCR's action was unreasonable. The court ruled for tenant, and the DHCR appealed. Courts:The DHCR wins. The agency reasonably accepted landlord's comparables when deciding the PAR. The DHCR had delayed two years in informing landlord of tenant's complaint and delayed in processing the matter. Landlord, on the other hand, promptly requested forms to answer the fair market rent appeal and requested time to compile comparability data. The law concerning the scope of comparability data also changed in landlord's favor in 1997 while the case was pending, which was a result of the DHCR's delay, not landlord's. In the circumstances, the DHCR reasonably accepted landlord's comparability data.

Gilman v. DHCR: NYLJ, 1/17/02, p. 17, col. 2 (App. Div.1 Dept.; Mazzarelli, JP, Sullivan, Wallach, Rubin, Friedman, JJ)