In the Matter of Terrace Court, LLC, Appellant v. New York State Division of Housing and Community Renewal…

Summary

The Court held that the Division of Housing and Community Renewal (DHCR) is authorized to grant a major capital improvement rent increase while permanently exempting particular apartments, and that its decision to permanently exempt five apartments was not arbitrary or capricious. Accordingly, the Court affirmed the Appellate Division’s order. Judge Smith filed a concurring opinion expressing misgivings about the agency’s lack of explanation for choosing a permanent exemption.