Bambeck v. State Division of Housing & Community Renewal

129 A.D.2d 51, 517 N.Y.S.2d 130, 1987 N.Y. App. Div. LEXIS 43660
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJune 18, 1987
StatusPublished
Cited by27 cases

This text of 129 A.D.2d 51 (Bambeck v. 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
Bambeck v. State Division of Housing & Community Renewal, 129 A.D.2d 51, 517 N.Y.S.2d 130, 1987 N.Y. App. Div. LEXIS 43660 (N.Y. Ct. App. 1987).

Opinion

[52]*52OPINION OF THE COURT

Kassal, J.

Petitioners are the owners of the subject premises, located at 206-208 East 35th Street, originally constructed in 1857. They took title on October 10, 1980 by a single deed from Luba Realty, Inc., a corporation which had owned the premises since December 29, 1978. During the time Luba held title, petitioners were the principals of that corporation. Originally, the building premises, 25 feet wide and three stories high, were constructed as two-family dwellings, each a triplex with a basement and a separate service and family entrance. The property, which has been in common ownership since 1914, was converted from a two-family house to a rooming house in the 1930’s and, in 1952, there was another conversion to an apartment house. Initially, subject to rent control, the premises were decontrolled in 1953. At the present time, the building contains eight apartment units, four on each side.

The dispute as to the status of the buildings has been pending for some time and was the subject of a prior appeal, sub nom. Matter of Luba Realty v Joy (88 AD2d 864) when the matter was remanded to respondent’s predecessor, the Conciliation and Appeals Board, to determine whether the premises form a horizontal multiple dwelling, consisting of eight apartments.

After considering the submissions by the owners and the tenants on such remand, respondent rendered its determination, setting forth the various factors and concluding that the premises were a single multiple dwelling, subject to the Rent Stabilization Law and the Emergency Tenant Protection Act of 1974. The opinion recited the contentions of the respective parties, including the owners’ claim that these were separate buildings, not subject to rent stabilization.

The owners’ contentions were that each building had a separate certificate of occupancy; a separate cellar, each with its own entrance; a separate chimney and flue; each building had a separate front stairway entrance, separate front hallways, public halls, interior stairways, mailboxes and bell and buzzer systems; each had separate multiple dwelling registration numbers; and each had separate real estate block and lot numbers recorded at the City Register’s office. As a result, the buildings were billed and taxed separately by the city for real estate, water and sewer taxes and had separate municipal inspections and violation reports. While, at one time, there [53]*53was one heating system, shared by both, each currently has its own individual heating plant.

In contrast, the tenants, including some who had resided in the building for 27 years, claimed that during this time there has been one common boiler for both sides, located in the cellar under No. 208, and one common oil storage tank, located in the cellar under No. 206. There is only one sewer pipe leading from the building to the street, under No. 206, and only one water main leading into the building, located in the cellar under No. 206, which is the source of water for all eight apartments. The tenants pointed to the fact that there was a common cellar which was divided by a weight-bearing wall and which bisected the building, but that there is a door-sized opening in the wall, which makes the cellar accessible from either building. They disputed the owners’ claim that there were separate chimneys, arguing that, although there are two chimneys, the rear chimney is for all the eight back-to-back fireplaces in the building, one for each apartment, and the other, in the front, is used for furnace effluence from the common oil burner. The buildings share a common electrical wiring system and a single fuse box, to the extent that when No. 208 had a series of blackouts in 1978, traced to a faulty air conditioner in that building, this also resulted in blackouts in No. 206. For at least the last 25 years, there has been one superintendent and the premises, with a long history of common ownership, has been operated as a single enterprise since 1914. A joint integrated sprinkler system was installed in 1937, at or about the time the building was converted into a rooming house and both sides of the building share the same smoke control system.

Photographs of the building in the record depict a single, uninterrupted wall surface, cornice and molding, with one drainpipe in the center, leading to a drain on the No. 208 side, without any drain on the No. 206 side. Although no engineering reports were submitted in the proceedings before respondent, the tenants claimed that the weight-bearing wall which divided the two sides of the building would be insufficient to support either side as an exterior wall and neither side of the building could be razed without undermining the structural integrity of the adjoining half, thereby causing the collapse of the entire building.

Considering all these factors, respondent concluded that the building structure was not being operated as two independent units, constituted a horizontal multiple dwelling, containing [54]*54six or more units and, therefore, was subject to the Rent Stabilization Law. In doing so, the Commissioner referred to the presence of a common heating plant (furnace and oil source), a single sewer outlet and water main, a common bank of eight gas meters, a single power line leading into the building and a single bank of electric meters for all eight apartments, as well as the fact that the structure, now and in the past, had been operated under a common ownership. The Commissioner also expressly rejected the owner’s contention that the only horizontal multiple dwellings subject to rent stabilization were garden-type maisonette dwelling complexes.

In granting the owners’ CPLR article 78 petition, Special Term disagreed, observing, "it clearly appears to this court that the structures are not so interdependent or structurally integrated that future independent sale would be prevented.” In our view, in doing so, the court inappropriately substituted its judgment for that of respondent on factual matters which were within respondent’s primary jurisdiction to determine. The central issue at Special Term was whether the determination had a rational basis and, although the court may, in the first instance, have decided the issue differently, it could not substitute its own views for those of the agency in the absence of a finding that the administrative determination was arbitrary, capricious or irrational (Matter of Mid-State Mgt. Corp. v New York City Conciliation & Appeals Bd., 112 AD2d 72, affd 66 NY2d 1032; Matter of Phelps Mgt. Co. v Gliedman, 86 AD2d 540; Matter of Plaza Mgt. Co. v City Rent Agency, 48 AD2d 129, affd 37 NY2d 837).

Over the years, the issue of horizontal multiple dwelling status has been the subject of much litigation, as a result of which certain clearly delineated principles have evolved. In Matter of Love Sec. Corp. v Berman (38 AD2d 169, 170-171), Associate Justice Steuer, in an opinion for this court, enunciated the controlling rule in terms of judicial review of an administrative determination as follows: "The factors which contribute to determination of such a question are common ownership, management, including supply of services, and common facilities. As usual in such questions, cases present different combinations of those factors and no one factor can be said to be determinative (see Matter of Coyle v. Gabel, 21 N Y 2d 808; Matter of Castleton Estates v. Abrams, 1 A D 2d 390; Matter of Goldstein v. Gabel,

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Bluebook (online)
129 A.D.2d 51, 517 N.Y.S.2d 130, 1987 N.Y. App. Div. LEXIS 43660, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bambeck-v-state-division-of-housing-community-renewal-nyappdiv-1987.