10 West 66th Street Corp. v. New York State Division of Housing & Community Renewal

184 A.D.2d 143, 591 N.Y.S.2d 148, 1992 N.Y. App. Div. LEXIS 13335
CourtAppellate Division of the Supreme Court of the State of New York
DecidedNovember 24, 1992
StatusPublished
Cited by5 cases

This text of 184 A.D.2d 143 (10 West 66th Street Corp. v. New York State Division of Housing & Community Renewal) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
10 West 66th Street Corp. v. New York State Division of Housing & Community Renewal, 184 A.D.2d 143, 591 N.Y.S.2d 148, 1992 N.Y. App. Div. LEXIS 13335 (N.Y. Ct. App. 1992).

Opinion

OPINION OF THE COURT

Rubin, J.

At issue in this proceeding is the right of a shareowner of a cooperative corporation to receive a renewal lease to space for which no shares have been allocated. It is the tenant’s claim that this space, designated apartment 2B and described as a "maid’s room”, comprises part of his residence.

This matter is before us to review a decision of Supreme Court which, pursuant to CPLR Article 78, confirmed the determination of respondent Division of Housing and Community Renewal (DHCR) reversing a finding by the District Rent Administrator that apartment 2B is not subject to regulation under the Rent Stabilization Law (Rent Stabilization Law of 1969 [Administrative Code of City of NY] § 26-501 et seq., as amended by L 1985, ch 907, §1 [formerly section YY51-1.0 et seq.]). Presented for review are the propriety of the District Rent Administrator’s ruling that apartment 2B, the "maids unit”, is not subject to the rent regulation statute, the Commissioner’s ruling that DHCR is without authority to act in [146]*146this controversy and Supreme Court’s ruling, inter alia, confirming the Commissioner’s determination.

The facts, as stated by Supreme Court, are as follows. Since early 1974, respondent Henry Bolán has resided in apartment 4G. Bolán entered into a lease for apartment 2B with Park Ten Associates (presumably the former owner of the building) for a term beginning October 1, 1980 and ending September 30, 1983. The apartment is described in the certificate of occupancy as a "maid’s room” and "consists of one room, a closet, and a bathroom containing a wash basin and a stall shower, but no bathtub; there is no kitchen nor any cooking facilities.” The court further observed, "The Offering Plan recites that ‘[tjhere are seven maids’ rooms on the second floor of the Building, all of which are presently occupied on a month-to-month basis’ ”, and "The sponsor did not allocate shares of stock to apartment 2B.” On or about May 1, 1981, Bolán exercised the right to purchase the shares allocated to apartment 4G and currently occupies that unit pursuant to a proprietary lease. Upon the expiration of the lease to apartment 2B, the cooperative corporation refused to issue a renewal lease, and Bolán initiated a proceeding before respondent DHCR in response to efforts by the cooperative corporation to recover possession of the unit.

The District Rent Administrator issued a ruling dated March 6,1987 which states, "The subject unit is not subject to the Rent Stabilization Law and is, therefore, not under the jurisdiction of this Agency. The parties involved are directed to a court of competent jurisdiction to settle this matter.” Within a week, respondent Bolán completed a petition for administrative review (PAR) of the District Rent Administrator’s order, contending that "Apartment 2B is an integral part of and essential to my residence at the Building” and that it is "currently subject to the Rent Stabilization Law of 1969 as amended”. Therefore, Bolán contends, the cooperative corporation is obligated to issue him a renewal lease.

In deciding the PAR, the Commissioner of DHCR, in a contradictory ruling, stated he "is of the opinion that this petition should be granted in part” but agreed that the agency "is without power to resolve the controversy between the parties.” The Commissioner ruled that the District Rent Administrator’s determination was erroneous insofar as it found the apartment exempt from the Rent Stabilization Law. The Commissioner concluded that the operative question is whether apartment 2B is occupied by the tenant as his pri[147]*147mary residence, an issue which is required to be resolved "by a court of competent jurisdiction”. The Commissioner then proceeded to order the cooperative corporation to commence an appropriate action within 60 days or issue a renewal lease to Bolán.

At this juncture, several observations are in order. First, if, as the Commissioner determined, the agency lacks power to decide the controversy—because the issue is one of primary residence solely within the province of the court (Rent Stabilization Law § 26-504 [a] [1] [f])—the agency is likewise without authority to direct the parties to take any action. Also, because there is no impediment to the commencement, by the tenant, of a proceeding to obtain a judgment declaring his rights in the subject unit, there is no necessity for the administrative order directing the cooperative corporation to commence an action. Finally, in view of DHCR’s determination that it lacks jurisdiction, the agency’s conclusions of law are merely advisory and need not be accorded any weight by the court (compare, Matter of Howard v Wyman, 28 NY2d 434, 438).

The cooperative corporation commenced the instant CPLR article 78 proceeding to review the administrative determination by respondent DHCR. The notice of petition indicates that petitioner sought to annul and vacate the order of the Commissioner to the extent that it granted respondent Bolan’s PAR and directed petitioner to issue a renewal lease to Bolán for apartment 2B. Petitioner argued that, as a matter of law, the maid’s room is not subject to the Rent Stabilization Code (9 NYCRR 2520 et seq.) because it is located in a building owned by a cooperative apartment corporation.

In deciding the matter, however, Supreme Court adopted the rationale stated by the Commissioner that determination of this controversy turns on the issue of primary residence. The court reasoned: "It is beyond cavil that two non-contiguous apartments may constitute a tenant’s primary residence depending upon the intention of the tenant and the use to which the apartment is put (Sharp v. Melendez, 139 AD2d 262 [1st Dept. 1988], app. den. 73 NY2d 707 [1989]), even if the maid’s room would not, standing by itself, qualify for a [certificate of occupancy] as a residence [sic] dwelling unit (128 Central Park South Associates v. Cooney, 119 Misc.2d 1045 [Civ. Ct. N.Y.Co., 1983, Lehner, J.]). Here, petitioner has failed to raise any triable issue of fact as to Bolan’s intention and use of apartment 2B as his primary residence along with [148]*148apartment 4G. Moreover, the failure of petitioner to serve a notice of intention to commence a proceeding to recover possession of apartment 2B within the requisite window period of 120-150 days prior to the expiration of the lease based on nonprimary residence precludes the landlord from refusing to renew the lease to apartment 2B on that ground (Golub v. Frank, 65 NY2d 900 [1985]; Crow v. 83rd St. Associates, 68 NY2d 796 [1986]).”

Supreme Court dismissed the petition and directed petitioner to renew the lease to apártment 2B "so long as Bolán occupies apartment 4G as his primary residence.” In addition, the court awarded respondent Bolán reasonable counsel fees incurred in litigating this matter and in pursuing an administrative remedy before respondent DHCR.

In a proceeding to review the determination of an administrative agency brought pursuant to CPLR 7803 (3), inquiry is limited to "whether a determination was made in violation of lawful procedure, was affected by an error of law or was arbitrary and capricious or an abuse of discretion” (including any penalty imposed). The proceeding is a special proceeding (CPLR 7804 [a]) within the purview of CPLR article 4.

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Bluebook (online)
184 A.D.2d 143, 591 N.Y.S.2d 148, 1992 N.Y. App. Div. LEXIS 13335, Counsel Stack Legal Research, https://law.counselstack.com/opinion/10-west-66th-street-corp-v-new-york-state-division-of-housing-community-nyappdiv-1992.