Ordered that the judgment is reversed, on the law, with costs, the petition is granted, and the determination is annulled.
The determination of the New York State Division of Housing and Community Renewal (hereinafter the DHCR) was arbitrary and capricious (see CPLR 7803 [3]). The DHCR failed to consider the parties' settlement of a prior rent overcharge proceeding which it had approved (see 9 NYCRR 2520.13). Accordingly, the Supreme Court erred in denying...
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