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In Re Lite View, LLC v. New York State Division of Housing and Community Renewal

May 24, 2012

IN RE LITE VIEW, LLC,
PETITIONER-APPELLANT,
v.
NEW YORK STATE DIVISION OF HOUSING AND COMMUNITY RENEWAL,
RESPONDENT-RESPONDENT.



The opinion of the court was delivered by: Tom, J.

Matter of Matter of Lite View, LLC v New York State Div. of Hous. & Community Renewal

Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431.

This opinion is uncorrected and subject to revision before publication in the Official Reports.

Decided on May 24, 2012

SUPREME COURT, APPELLATE DIVISIONFirst Judicial Department

Peter Tom, J.P. James M. Catterson Dianne T. Renwick Helen E. Freedman Sallie Manzanet-Daniels, JJ.

Petitioner appeals from an order and judgment (one paper) of the Supreme Court, New York County (Joan B. Lobis, J.), entered January 14, 2011, denying its petition to annul the order and opinion of respondent New York State Division of Housing and Community Renewal, dated April 22, 2010, which granted the petition for administrative review and revoked a previously issued order of the Rent Administrator that had granted owner's application to, inter alia, install an elevator within the subject premises, and dismissing the proceeding brought pursuant to CPLR article 78. Kucker & Bruh, LLP, New York (Robert H. Berman of counsel), for appellant. Gary R. Connor, New York (Martin B. Schneider and Patrice Huss of counsel), for respondent. TOM, J.P.

The issue raised on this appeal is whether petitioner owner's proposed installation of an elevator shaft within a tenant's apartment will change the shape and character of the dwelling space and materially affect the tenant's use and enjoyment of that space in contravention of the rent laws.

Owner acquired the premises known as 218 East 84th Street in Manhattan by an indenture dated April 14, 2009. The building is described as a five-story walk-up containing 20 residential units, four on each floor. Two weeks later, owner filed an application with respondent Division of Housing and Community Renewal (DHCR) to install an elevator.

Owner's application recites that five apartments in vertical line D of the building "will need to transfer space from their existing kitchens to the proposed [elevator] shaft." The ground-floor unit, which is rent-stabilized, is occupied by tenant John Burke. The other four apartments in line D are currently vacant and deregulated. Tenant's unit is a rectangular studio apartment with the bathroom and kitchen located in the front of the dwelling unit and the rear of the unit facing the courtyard. In order to accommodate the elevator shaft to be installed at the front of the unit, the existing bathroom would be relocated rearward in the space now occupied by the kitchen, which would, in turn, be reconstructed in the living area. This being a small studio apartment, the living room also functions as tenant's bedroom.

In its application, owner proposed extending the rear of the building into the backyard to replace the floor space lost by the installation of the elevator shaft; renovating tenant's apartment and relocating tenant to a comparable apartment at owner's expense during the approximately two months required to complete the necessary alterations; and reducing tenant's rent by 10% to compensate for his loss of the use of that portion of the backyard taken up by the proposed extension. The Rent Administrator issued an order granting owner "permission to change or decrease dwelling space, essential services, etc." pursuant to Rent Stabilization Code (RSC) (9 NYCRR) § 2522.4.

Tenant filed a petition for administrative review (PAR) supported by the affirmation of his attorney, asserting that tenant has resided in the apartment since 1978, that he is a "severely disabled senior citizen, who requires the assistance of a home attendant due to his poor health" and that requiring him to relocate, even temporarily, would be "extremely burdensome, due to his poor health and advanced age." It asserts that owner's attempt to compensate for the loss of the 66 square feet required for the elevator shaft by extending the rear of the apartment is inadequate and that the proposed alterations "would completely change the shape and character of the apartment."

By order of the Deputy Commissioner, DHCR granted tenant's PAR and revoked the Rent Administrator's order. The Deputy Commissioner's order summarizes owner's proposal to take about 63 square feet, or 18% of the dwelling space, from the front of the apartment to accommodate the elevator shaft and to add some 66 square feet at the rear of the apartment. The order further notes that the proposed elevator installation is not a necessary improvement or required by law. It makes no finding on whether the backyard was under the exclusive control of tenant, nor does it address either the effect of a temporary relocation on his health or the benefit conferred by receiving a newly renovated apartment with a 10% reduction in rent. It concludes that the proposed alterations to the apartment "would result in a significant reconfiguration of the apartment and the impact of such a significant change would materially reduce the use and enjoyment of the apartment by the tenant in contravention of the Rent Laws."

Owner brought this article 78 proceeding to annul DHCR's determination, culminating in the judgment under review. Supreme Court held that "DHCR's determination is based on its evaluation of the specific facts of this situation and its expertise in evaluating such facts[] is supported by the record, and is therefore entitled to deference and shall not be disturbed." Owner contends that the court committed error in deferring to the agency's ...


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