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

Summary

The New York Court of Appeals held that the Division of Housing and Community Renewal (DHCR) is authorized to grant a major capital improvement (MCI) rent increase while permanently exempting particular apartments, and that the permanent exemption of five apartments in this case was not arbitrary or capricious. The Court affirmed the Appellate Division’s order upholding DHCR’s decision. Justice Smith, in a concurring opinion, joined the judgment but expressed misgivings about DHCR’s lack of explanation for choosing permanent exemption over temporary suspension.