Court Upholds DHCR Approval of MCI Rent Increases as Rational

May 25, 2022

LVT Number: #32055

In 2017, the DHCR's Rent Administrator granted landlord's MCI rent increase application based on landlord's installation of a new roof, pointing, waterproofing, parapet, and sidewalk shed. Some tenants filed a PAR, which the DHCR denied. One tenant then filed an Article 78 court appeal, claiming that the DHCR's decision was arbitrary and unreasonable. The court ruled against tenant, who appealed and lost. The appeals court found the DHCR's decision to be supported by a rational basis in the record.

In 2017, the DHCR's Rent Administrator granted landlord's MCI rent increase application based on landlord's installation of a new roof, pointing, waterproofing, parapet, and sidewalk shed. Some tenants filed a PAR, which the DHCR denied. One tenant then filed an Article 78 court appeal, claiming that the DHCR's decision was arbitrary and unreasonable. The court ruled against tenant, who appealed and lost. The appeals court found the DHCR's decision to be supported by a rational basis in the record. And, for the first time on appeal, tenant argued that the DRA should have disallowed the cost of the sidewalk shed. The court wouldn't consider that claim at this stage of review.

Matter of Singh v. DHCR: Index No. 6769/18, Case No. 2019-06944, 2022 NY Slip Op 02419 (App. Div. 2 Dept.; 4/13/22; Nelson, JP, Chambers, Roman, Zayas, JJ)

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