Plaza Management Co. v. Department of Rent

80 Misc. 2d 348, 363 N.Y.S.2d 451, 1974 N.Y. Misc. LEXIS 1896
CourtNew York Supreme Court
DecidedDecember 16, 1974
DocketMotion No. 42; Motion No. 39; Motion No. 41
StatusPublished
Cited by1 cases

This text of 80 Misc. 2d 348 (Plaza Management Co. v. Department of Rent) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Plaza Management Co. v. Department of Rent, 80 Misc. 2d 348, 363 N.Y.S.2d 451, 1974 N.Y. Misc. LEXIS 1896 (N.Y. Super. Ct. 1974).

Opinion

Morris E. Spector, J.

Article 78 proceedings designated Nos. 39, 40, 41 and 42 on the motion calendar of August 27, 1974 are [349]*349consolidated for the purposes of disposition and decided as indicated hereinbelow.

The proceeding designated No. 39 is brought individually by the petitioner as the owner and landlord of the premises at 140 Bast 46th Street in New York City, seeking the revocation of a corrected maximum base rent order which had reduced rent increases previously approved under the “ Maximum Base Bent Law ” (Local Laws, 1970, No. 30 of City of New York) for apartments in said premises.

The proceeding designated No. 42 is brought individually by the same petitioner as the owner and landlord of the premises at 205 East 78th Street in New York City seeking similar relief with respect to the subject premises.

The proceeding designated No. 40 seeks a stay of any requirement to make retroactive rent refunds by reason of the reductions provided for in the corrected MBB orders.

The proceeding designated No. 41 is brought by Plaza Management Co. on behalf of itself as owner of the two aforesaid buildings which are subject to maximum base rent regulations and orders and all other owners similarly situated. The petitioner is seeking to annul the determination by the Commissioner of Bent and Housing Maintenance as contained in his order and opinion denying this petitioner’s protest as to specified portions of the City Bent, Eviction and Behabilitation Begulations as interpreted by the commissioner. That interpretation provided an area must contain at least 59 square feet to be considered a kitchen and thereby included as a room in the room count for the petitioner’s apartments.

On July 10, 1970, the City of New York amended the city rent law by the adoption of Local Law No. 30 which provided for the establishment of maximum rents to be effective on January 1, 1972, giving consideration to factors prescribed by a formula which included the number of rooms in a particular housing unit. In order to assist in the implementation of this system section Y51-5.0 (subd. a, par. [2], cl. [e]) of the Administrative Code of the City of New York provided for interim rent adjustments to be based upon the landlord’s filing a report with the Housing and Development Administration upon forms prescribed by the administration. Between August 1,1970, and November 1, 1970, the petitioner filed reports designated by the Department of Bent and Housing Maintenance as A-23 and B-23 as prescribed in subdivision g of section 23 of the regulations for compensatory lease adjustment. Form A-23 required the landlord to indicate with respect to each subject apartment the number of rooms and [350]*350whether or not the particular apartment contained a ‘1 kitchen ’ ’ or a “ kitchenette.” On the reverse side of form A-23 under the heading “ Part V — Interpretations and Definitions” the basis for computing the number of rooms was interpreted and defined as follows:

Room Count — The room count shall not include bathroom, foyer, windowless room and shall be limited to living* room, kitchen (other than an enclosed kitchenette or an area in the living room which is either recessed or semi-enclosed), dining room (other than dinette or dining alcove) and bedrooms.”

Based on that interpretation and definition the petitioner . found each of its 221 apartments to have contained a kitchen and each such kitchen was recorded as a room on the said A-23 forms.

On March 5, 1971, by Amendment No. 30, under subdivision i of section 23 of the Regulations of the Housing and Development Administration, a “kitchen (other than an enclosed kitchenette or an area in the living room which is either recessed or 'Semi-enclosed) ” was specifically included in the definition of “ room.” Thereafter, on January 1, 1972, the respondent by Amendment No. 33 added section 24 to its regulations for implementation of the Maximum Base Rent System, which, in paragraph (2). of subdivision a of section 24 prescribed that, “ Except as otherwise provided, the application of this section shall be based upon the reports submitted pursuant to Sections 23 and 49 of these Regulations ”. Thus, the data supplied by the landlords for computing the interim rent increase were to be utilized in part as a basis of the computations necessary for issuing the MBR orders.

It is the respondent’s attempt to define a kitchen as requiring at least 59 square feet which gave rise to this proceeding. Local Law No. 30 which provided for the establishment of the Maximum Base Rent System was general in nature and did not define what constituted a room. On March 5, 1971, as aforesaid, Amendment No. 30 to the regulations provided for a kitchen to be included as a room but it did not further define kitchen or provide a basis for distinguishing a kitchen from a kitchenette. Although there is a disagreement between the parties as to when the respondent first adopted the “ 59 square feet ” definition of what constitutes a kitchen, it seems clear from the record that such determination was first adopted subsequent to July 2, 1971. Until such time there was nothing to indicate that the cooking areas in the petitioner’s apartments would not be considered as kitchens and thereby not included in the room count.

[351]*351Since the determination adopting the more limited and restrictive definition of a kitchen had the same effect as a rule or regulation and there is no evidence of its having been submitted to or approved by the State Commissioner of Housing and Community Renewal, it is violative of chapter 1012 of the Laws of 1971, effective July 2, 1971, which provided (in its last sentence) as follows: “No housing accommodations presently subject to regulation and control pursuant to local laws or ordinances adopted or amended under authority of this subdivision shall hereafter be by local law or ordinance or by rule or regulation which has not been theretofore approved by the state commissioner of housing and community renewal subjected to more stringent or restrictive provisions of regulation and control than those presently in effect. ’ ’

Accordingly, the rule by the respondent that a cooking area to be considered a kitchen must have at least 59 square feet, and the order and opinion by the commissioner, dated April 16, 1974, upholding that ruling and denying petitioner’s protests, are contrary to law.

This ruling by the respondent is contrary to law for the added reason that it was apparently applied and implemented without affording an opportunity to interested persons to comment in writing thereon by having notified them through publication, as required by the New York City Charter (ch. 49, § 1105, subd. b).

Based upon the information supplied by the petitioner and without application of the 59-square foot rule, the respondent issued an order fixing the maximum base rent for certain of the petitioner’s apartments, which had the effect of providing for an increase in rent. In response, the tenants affected by the increase filed a protest with the respondent ex parte and without notice to the petitioner. Upon deciding this protest in favor of the tenants, the respondent issued the aforesaid corrected MBR orders which had the effect of retroactively reducing the maximum base rent for certain of petitioner’s apartments by application of the 11 59-square foot rule. ’ ’ This rule caused the cooking area in certain apartments not to be considered kitchens, and therefore, not includable in the room count.

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48 A.D.2d 629 (Appellate Division of the Supreme Court of New York, 1975)

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Bluebook (online)
80 Misc. 2d 348, 363 N.Y.S.2d 451, 1974 N.Y. Misc. LEXIS 1896, Counsel Stack Legal Research, https://law.counselstack.com/opinion/plaza-management-co-v-department-of-rent-nysupct-1974.