Tenants' Three-Unit Buildings Weren't Part of HMD

In two separate proceedings, the DHCR ruled that Building A and Building C weren't subject to rent stabilization. Each building contained three apartments, but tenants in each building claimed that, together with Building B in between them, all three buildings constituted a horizontal multiple dwelling (HMD) containing six or more dwelling units, and therefore subject to rent stabilization. Tenants then filed an Article 78 appeal and argued that the DHCR's decision was unreasonable.

The court ruled against tenants. Although Buildings A, B, and C were under common ownership on the same block, the separate features of each building predominated over their common features. Separate physical features included separate water mains, sewer lines, gas mains and meters, electrical circuit panels and meters, street entrances, bell-buzzer door systems, and mailboxes. The DHCR evaluated the buildings' common facilities as of the date the building or complex first became subject to the Rent Stabilization Law. And tenants weren't deprived of due process of law because the DHCR didn't provide them with copies of its inspection reports.

Mendoza v. DHCR: Index No. 2017-12155, 2020 NY Slip Op 02614 (App. Div. 2 Dept.; 5/6/20; Mastro, JP, Leventhal, Maltese, Brathwaite Nelson, JJ)