Matter of 186 Norfolk LLC v New York State Div. of Hous. & Community Renewal

Holding The court affirmed the denial of the petition to annul DHCR’s determination, finding that the agency’s refusal to allow a first market rent was not arbitrary or capricious. The court held that the minor addition of 20 square feet to the units did not constitute a significant reconfiguration or the creation of a new housing accommodation in nonresidential space.

The court’s words

The Rent Stabilization Code "provides no 'first rent' mechanism," such that the ability for landlords to charge a first rent "is only an administratively created policy"

2026 NY Slip Op 05900, at the official text

DHCR rationally concluded that taking 20 square feet from a common area hallway and adding it to the subject units' bathrooms did not effect a "reconfiguration plus obliteration of the prior apartment's particular identity"

2026 NY Slip Op 05900, at the official text

DHCR rationally concluded that the 20 square feet, in which petitioner placed a washing machine, did not create a housing accommodation, regardless of whether the hallway qualified as space previously used for nonresidential purposes

2026 NY Slip Op 05900, at the official text