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CITY OF NY v. STATE DHCR

97 N.Y.2d 216 (2001)

765 N.E.2d 829

739 N.Y.S.2d 333

CITY OF NEW YORK, Respondent, v. NEW YORK STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL, Respondent. RENT STABILIZATION ASSOCIATION OF NEW YORK CITY ET AL., Intervenors-Appellants; MET COUNCIL ON HOUSING ET AL., Intervenors-Respondents.

Court of Appeals of the State of New York.

Decided December 20, 2001.

Attorney(s) appearing for the Case

Borah, Goldstein, Altschuler, Schwartz & Nahins, P. C., New York City (Jeffrey R. Metz of counsel), for intervenors-appellants.

Michael D. Hess, Corporation Counsel of New York City, Brooklyn (Dona B. Morris, Francis F. Caputo, Deborah Rand and Spencer Fisher of counsel), for respondent.

Collins, Dobkin & Miller, L. L. P., New York City (Stephen Dobkin of counsel), for intervenors-respondents.

Judges SMITH, LEVINE, CIPARICK and WESLEY concur with Chief Judge KAYE; Judge ROSENBLATT dissents and votes to reverse in a separate opinion; Judge GRAFFEO taking no part.

OPINION OF THE COURT

Chief Judge KAYE.

The formula for the maximum base rent (MBR) for rent-controlled New York City apartments ensures landlords an 8.5% return on capital value, defined as equalized assessed valuation under the Real Property Tax Law. That State statute provides two possibly applicable measures of equalized assessed valuation, article 12-A—which was formerly used—and article...

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