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PACST 1244-46, 1356, LLC v. State Div. of Hous. & Cmty. Renewal

Supreme Court of New York, Second Department
Aug 23, 2023
219 A.D.3d 838 (N.Y. App. Div. 2023)

Opinion

2021–04457 Index No. 524336/20

08-23-2023

In the Matter of PACST 1244–46, 1356, LLC, appellant, v. State of New York DIVISION OF HOUSING AND COMMUNITY RENEWAL, respondent.

The Law Offices of Jay S. Markowitz, P.C., Williston Park, NY, for appellant.


The Law Offices of Jay S. Markowitz, P.C., Williston Park, NY, for appellant.

VALERIE BRATHWAITE NELSON, J.P., JOSEPH J. MALTESE, PAUL WOOTEN, LILLIAN WAN, JJ.

DECISION & ORDER In a proceeding pursuant to CPLR article 78 to review so much of a determination of a Deputy Commissioner of the New York State Division of Housing and Community Renewal dated November 19, 2020, as upheld so much of a determination of a Rent Administrator dated January 28, 2020, as found that a rent overcharge had occurred, the petitioner appeals from a judgment of the Supreme Court, Kings County (Wayne Saitta, J.), dated June 9, 2021. The judgment denied the petition and, in effect, dismissed the proceeding.

ORDERED that the judgment is affirmed, without costs or disbursements.

The petitioner is the owner of a rent-stabilized apartment located in Brooklyn. The Tenant Protection Unit of the New York State Division of Housing and Community Renewal (hereinafter DHCR) commenced an administrative proceeding against the petitioner, alleging that the petitioner overcharged the rent paid by the tenant of the apartment. In a determination dated January 28, 2020, a Rent Administrator of the DHCR determined that the petitioner had overcharged the tenant, and directed the petitioner, inter alia, to roll back the rent to the legal regulated rent and to make a full refund or credit to the tenant of any excess rent paid. The petitioner filed a petition for administrative review of the determination dated January 28, 2020, contending that the increase in rent was justified by certain improvements made to the apartment. In a determination dated November 19, 2020, a Deputy Commissioner of the DHCR, inter alia, upheld that portion of the Rent Administrator's determination which found a rent overcharge. The petitioner commenced this proceeding pursuant to CPLR article 78 to annul that portion of the determination dated November 19, 2020. The Supreme Court denied the petition and, in effect, dismissed the proceeding. The petitioner appeals.

In a CPLR article 78 proceeding to review a determination of the DHCR, judicial review is limited to the question of whether the determination was made in violation of lawful procedure, was affected by an error of law, or was arbitrary and capricious or an abuse of discretion (see CPLR 7803[3] ; Matter of Sha Realty, LLC v. New York State Div. of Hous. & Community Renewal, 193 A.D.3d 864, 865, 142 N.Y.S.3d 373 ). "A determination by the DHCR concerning rent increases due to claimed improvements ‘necessarily entails the agency's expertise in evaluating factual data and is entitled to deference if it is not irrational or unreasonable’ " ( Matter of Sha Realty, LLC v. New York State Div. of Hous. & Community Renewal, 193 A.D.3d at 866, 142 N.Y.S.3d 373, quoting Matter of West Vil. Assoc. v. Division of Hous. & Community Renewal, 277 A.D.2d 111, 112, 717 N.Y.S.2d 31 ; see Matter of Ansonia Residents Assn. v. New York State Div. of Hous. & Community Renewal, 75 N.Y.2d 206, 213, 551 N.Y.S.2d 871, 551 N.E.2d 72 ). Here, the DHCR's determination that the petitioner failed to establish its claimed improvements with adequate documentation had a rational basis and was not arbitrary and capricious (see Matter of Sha Realty, LLC v. New York State Div. of Hous. & Community Renewal, 193 A.D.3d at 866, 142 N.Y.S.3d 373 ; Matter of Buchanan v. New York State Div. of Hous. & Community Renewal, 163 A.D.3d 961, 962, 83 N.Y.S.3d 497 ; cf. Matter of Ador Realty, LLC v. Division of Hous. & Community Renewal, 25 A.D.3d 128, 138–140, 802 N.Y.S.2d 190 ). Accordingly, the Supreme Court properly denied the petition and, in effect, dismissed the proceeding.

BRATHWAITE NELSON, J.P., MALTESE, WOOTEN and WAN, JJ., concur.


Summaries of

PACST 1244-46, 1356, LLC v. State Div. of Hous. & Cmty. Renewal

Supreme Court of New York, Second Department
Aug 23, 2023
219 A.D.3d 838 (N.Y. App. Div. 2023)
Case details for

PACST 1244-46, 1356, LLC v. State Div. of Hous. & Cmty. Renewal

Case Details

Full title:In the Matter of PACST 1244-46, 1356, LLC, appellant, v. State of New York…

Court:Supreme Court of New York, Second Department

Date published: Aug 23, 2023

Citations

219 A.D.3d 838 (N.Y. App. Div. 2023)
195 N.Y.S.3d 267
2023 N.Y. Slip Op. 4383