Rent Reduced in 1987 Was Restored as of 2020

Prior tenant complained to the DHCR of a reduction in services after a fire rendered his apartment uninhabitable. The DRA ruled for tenant in 1987 and reduced and froze his rent. Landlord applied for rent restoration more than 20 years later, in August 2020. The DRA granted this application in August 2021 and restored rent retroactive to Aug. 1, 2020. Landlord appealed, claiming that the rent should have been restored retroactive to July 1989 or to Mar. 15, 2013. The DHCR ruled against landlord, who then filed an Article 78 court appeal and claimed that the DHCR's decision was arbitrary and unreasonable.

The court ruled against landlord, who appealed and lost. The appeals court found that the DHCR's decision had a rational basis. Landlord initially submitted its application to restore rent in August 2020. The DHCR quickly returned the application to landlord as incomplete. Landlord then submitted a new application in September 2020. The current tenants submitted sworn statements dated July 29, 2020, indicating that the apartment was being maintained in excellent condition at that time, and was fit for use and occupancy. The DHCR confirmed this by inspection. Landlord had submitted additional proof with its PAR that the apartment was occupied earlier than Aug. 1, 2020. But this information wasn't submitted to the DRA and, in any event, didn't establish that the apartment was habitable before Aug. 2, 2020.

128 Second Realty LLC v. DHCR: Index No. 157796/22, App. No. 1708, Case No. 2023-04038, 2024 NY Slip Op 00853 (App. Div. 1 Dept.; 2/20/24; Webber, JP, Gesmer, Gonzalez, Pitt-Burk, Rosado, JJ)