Landlord's Participation in LIHTC Program Didn't Prevent DHCR from Deciding Overcharge Claim

Rent-stabilized tenant complained of rent overcharge. The DHCR ruled for tenant. Landlord then filed an Article 78 court appeal, claiming that the DHCR's decision was arbitrary and unreasonable. The court dismissed landlord's appeal. Landlord then filed a further appeal to a higher court. The appeals court ruled against landlord. The building received J-51 tax benefits starting in July 1991. Landlord claimed that its participation in the federal low-income housing tax credit (LIHTC) program satisfied the rent regulation requirement under the J-51 tax benefit program to the exclusion of the Rent Stabilization Law. Landlord argued that the DHCR therefore had no jurisdiction to decide tenant's rent overcharge claim. The court agreed that the DHCR reasonably determined that landlord failed to show that its participation in the LIHTC program preempted or was incompatible with the Rent Stabilization Law. 

In re: Cht Place: App. No. 2019-12441, Index No. 519665/18, 194 NYS3d 122, 2023 NY Slip Op 04122 (App. Div. 2 Dept.; 8/2/23; Dillon, JP, Maltese, Genovesi, Taylor, JJ)