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TERRACE COURT, LLC v. NYS DHCR

No. 2.

18 N.Y.3d 446 (2012)

963 N.E.2d 1250

940 N.Y.S.2d 549

2012 NY Slip Op 1100

In the Matter of TERRACE COURT, LLC, Appellant, v. NEW YORK STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL, Respondent. ROBERT KATEL et al., Intervenors-Respondents.

Court of Appeals of New York.

Decided February 14, 2012.

Attorney(s) appearing for the Case

Duane Morris LLP, New York City ( Thomas R. Newman of counsel), Wenig Saltiel & Johnson LLP, Brooklyn ( Meryl L. Wenig and Arthur Birnbaum of counsel), and Jacob Haberman, New York City, for appellant.

Gary R. Connor , General Counsel, New York State Division of Housing and Community Renewal, New York City ( Christina S. Ossi of counsel), for respondent.

Collins, Dobkin & Miller, LLP, New York City ( Seth A. Miller of counsel), for intervenors-respondents.

Himmelstein, McConnell, Gribben, Donoghue & Joseph, New York City ( David Hershey-Webb of counsel), for New York State Tenants & Neighbors Coalition, Inc. and another, amici curiae.

Borah, Goldstein, Altschuler Nahins & Goidel, P.C., New York City ( Paul N. Gruber and David B. Carera of counsel), for Community Housing Improvement Program of New York City and another, amici curiae.

Chief Judge LIPPMAN and Judges CIPARICK, READ, SMITH, PIGOTT and JONES concur with Judge GRAFFEO; Judge SMITH concurs in a separate opinion.

OPINION OF THE COURT

GRAFFEO, J.

In this appeal we consider whether the Division of Housing & Community Renewal (DHCR) is authorized to grant a major capital improvement rent increase while at the same time permanently exempting particular apartments from the obligation to pay additional rent when circumstances warrant. We hold that DHCR has been granted such authority and, on this record, it was not arbitrary or capricious for DHCR to permanently exempt...

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