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MATTER OF 215 W 88TH STREET HOLDINGS LLC v. NEW YORK STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL

2068, 100693/14, 100694/14.

143 A.D.3d 652 (2016)

2016 NY Slip Op 07096

40 N.Y.S.3d 92

In the Matter of 215 W 88TH STREET HOLDINGS LLC, Appellant-Respondent, v. NEW YORK STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL, Respondent, and LENNART PEHRSON et al., Respondents-Appellants. In the Matter of LENNART PEHRSON et al., Respondents-Appellants, v. NEW YORK STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL, Respondent, and 215 W 88TH STREET HOLDINGS LLC, Appellant-Respondent.

Appellate Division of the Supreme Court of New York, First Department.

Decided October 27, 2016.

The court properly upheld DHCR's determination that the inclusion of a fraudulent nonprimary residence rider in the tenants' initial lease rendered it a legal nullity and required that the base date rent, for purposes of calculating the rent overcharge, be arrived at using the "default method" (see Thornton v Baron, 5 N.Y.3d 175 [2005]; Levinson v 390 W. End Assoc., L.L.C., 22 A.D.3d 397

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