Rent Hikes Approved Based on 'Unique or Peculiar Circumstances'

Landlord applied for rent hikes for rent-controlled tenants based on unique or peculiar circumstances. Landlord claimed that tenants' rents were substantially lower than rents generally in the same area for similar apartments. The DHCR ruled for landlord. Tenants appealed, claiming that the DHCR's decision was unreasonable. The court and appeals court ruled against tenants, finding that the DHCR's decision was based on a calculation of comparable rents in a reasonable manner. Tenants had submitted alternative comparable rents to the DHCR. But the rents tenants submitted didn't show how they were calculated or whether they included subsidies tenants had received. The rents tenants claimed were comparable also were for smaller apartments than the subject apartments and were too small a sample. The DHCR did consider whether the rent hikes would pose a hardship for tenants, and ruled that the rent hikes would be phased in over a four-year period.

Harding v. Calogero: NYLJ, 11/15/07, p. 39, col. 2 (App. Div. 1 Dept.; Saxe, JP, Friedman, Sweeny, McGuire, Malone, JJ)