Landlord Can't Continue Case While DHCR Reconsidering Destabilization Issue

(Decision submitted by Queens attorney Robert A. Katz, attorney for the tenants.) Facts: Landlord applied for high-rent/high-income destabilization of tenant's apartment. The DRA ruled for landlord in December 1995 based on tenant's failure to respond to the DRA's request for income verification data. Tenant appealed the DRA's order. In the meantime, landlord sued to evict tenant since tenant's lease had expired and the DRA had deregulated the apartment. Landlord and tenant agreed to hold off on the nonpayment case in housing court while tenant's PAR was pending. Later, the DHCR again ruled for landlord. Tenant appealed the DHCR's PAR ruling in court. The court sent the case back to the DHCR for reconsideration of the issue of the DRA's mailing of the deregulation notice. Landlord then asked the housing court to allow it to move ahead on the eviction case. Courts: Landlord loses. Under the Rent Stabilization Code, there's an automatic delay of a DRA's order while a PAR is pending. So tenant's PAR automatically delayed deregulation of the apartment. Since the court sent the case back to the DHCR, the automatic delay of the DRA's order was reinstated. Tenant's apartment wouldn't be destabilized unless the DHCR again upheld the DRA's order.

Belnord Realty Assoc. v. Danzig: NYLJ, p. 26, col. 2 (7/1/98) (Civ. Ct. NY; Ling-Cohan, J)