Tenant's Challenge to MBR Increase Denied by Court

March 10, 2020

LVT Number: #30671

Rent-controlled tenant objected to the maximum base rent (MBR) adjustment obtained by landlord. The DHCR ruled against tenant and upheld the DRA's increase of the tenant's MBR for the 2016-2017 biennial period. Tenant then filed an Article 78 court appeal, claiming that the DHCR's decision was arbitrary and unreasonable. The court ruled against tenant. Tenant appealed and lost. It was undisputed that landlord made all certifications required for MBR eligibility. An audit of the building by the DHCR wasn't required.

Rent-controlled tenant objected to the maximum base rent (MBR) adjustment obtained by landlord. The DHCR ruled against tenant and upheld the DRA's increase of the tenant's MBR for the 2016-2017 biennial period. Tenant then filed an Article 78 court appeal, claiming that the DHCR's decision was arbitrary and unreasonable. The court ruled against tenant. Tenant appealed and lost. It was undisputed that landlord made all certifications required for MBR eligibility. An audit of the building by the DHCR wasn't required. The DHCR's interpretation of its own regulation was reasonable. This required landlord to certify that it corrected "all rent-impairing violations" and "at least 80 percent of all other violations of the Housing Maintenance Code or Multiple Dwelling Law" on record with HPD. 

Whitman v. DHCR: Index Nos. 10982, 106535/16, 2020 NY Slip Op 00981 (App. Div. 1 Dept.; 2/11/20; Friedman, JP, Renwick, Kern, Oing, JJ)

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