Rent Stabilization Ass'n of New York, Inc. v. Higgins

164 A.D.2d 283, 562 N.Y.S.2d 962, 1990 N.Y. App. Div. LEXIS 14744
CourtAppellate Division of the Supreme Court of the State of New York
DecidedDecember 4, 1990
StatusPublished
Cited by8 cases

This text of 164 A.D.2d 283 (Rent Stabilization Ass'n of New York, Inc. v. Higgins) 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
Rent Stabilization Ass'n of New York, Inc. v. Higgins, 164 A.D.2d 283, 562 N.Y.S.2d 962, 1990 N.Y. App. Div. LEXIS 14744 (N.Y. Ct. App. 1990).

Opinion

OPINION OF THE COURT

Ross, J. P.

The primary issue on these appeals is whether the IAS court properly enjoined the implementation of the emergency rule and subsequent amendment to the State Division of Housing and Community Renewal’s permanent regulations, adopted in order to conform and/or broaden the administrative regulations governing lease succession rights and antieviction protections, under the State and City of New York rent control and rent stabilization systems, in accordance with the Court of Appeals decision in Braschi v Stahl Assocs. Co. (74 NY2d 201).

In Braschi v Stahl Assocs. Co. (supra), the court held that the term "family” as used in section 2204.6 (d) of the New York City Rent and Eviction Regulations (9 NYCRR 2204.6 [d]), includes "two adult lifetime partners whose relationship is long term and characterized by an emotional and financial commitment and interdependence” (74 NY2d, at 211). On November 9, 1989, the State Division of Housing and Community Renewal (DHCR) began the process of amending the four sets of administrative regulations under its administration,1 to provide for leasehold succession rights in accordance with the broad definition of the term "family” set out in Braschi v Stahl Assocs. Co. (supra) by promulgating an emergency rule applicable to all four sets of regulations. The emergency rule broadened the definition of family members entitled to succession rights to include, in addition to those traditional relations previously named, those individuals residing in the housing accommodation, with the tenant of record, as a primary residence, who can prove emotional and financial commitment and interdependence between themselves and the tenant of record. The rule lists the following eight factors to be consid[288]*288ered in determining whether the requisite emotional and financial commitment and interdependence existed: length of relationship; sharing of expenses; intermingling of finances; engaging in family-type activities; formalization of legal obligations and responsibilities between the two parties; holding themselves out as family members through words or acts; regular performance of family functions; and any other pattern of behavior which evidences the intention of creating a long-term, emotionally committed relationship. Whereas, prior rent stabilization regulations provided for succession either, where the family member of the named tenant has resided in the housing accommodation as a primary resident from the inception of the tenancy or commencement of the relationship, and the named tenant vacates the premises (Rent Stabilization Code [9 NYCRR] § 2523.5 [b] [1]) or, where a family member has resided with such tenant in the housing accommodation as a primary resident for a period of no less than two years immediately prior to the death of the tenant (9 NYCRR 2523.5 [b] [2]),2 the emergency rule eliminated the distinction between the tenant of record’s death and the tenant of record’s departure. In either case, the family member would succeed to the rights of the tenant of record upon the tenant of record’s permanent vacatur of the housing accommodation provided the family member resided with the tenant of record as a primary resident, either for not less than two years (one year in the case of senior citizens [62 years or older] and disabled persons) or from the inception of the tenancy or commencement of the relationship (if the tenancy or relationship were less than two years, or one year old, as the case may be).

Plaintiffs commenced the within declaratory judgment action seeking a declaration that the emergency rule is null and void, ultra vires and unconstitutional, as a taking of property without just compensation. The complaint also alleges that the rule violated Real Property Law § 226-b which regulates the assignment of leases; Real Property Law § 235-f which [289]*289creates a right of occupancy but not leasehold rights for roommates; Domestic Relations Law § 11 which sets out the requirements and means for the solemnization of a marriage; and the administrative limitations in the Omnibus Housing Act of 1983, and the State Administrative Procedure Act.

By order to show cause dated November 13, 1989, plaintiffs moved in Supreme Court, Albany County, for a preliminary injunction enjoining the implementation of the emergency rule. An order to show cause was granted, which restrained the DHCR from "implementing or effectuating said Emergency Rule, or in any other manner promulgating, issuing, implementing or effectuating the terms, conditions or requirements thereof,” but made the motion returnable in Supreme Court, New York County.

On November 15, 1989, counsel for the plaintiffs and the DHCR entered into a stipulation which provided that the November 13, 1989 order to show cause would not be construed to preclude the DHCR from taking ministerial actions necessary to comply with the procedures required for the promulgation of the regulatory amendments, which are the subject of this action, such as the filing of required regulatory impact statements and regulatory flexibility analyses with the Secretary of State. On December 13, 1989, the New York County IAS court heard argument, and again extended the TRO pending determination of the preliminary injunction motion. During oral argument on the motion, the court was informed that the DHCR was in the process of promulgating permanent regulations and had already sent out notices that a public hearing was scheduled for January 22,1990.

On February 7, 1990, the DHCR filed with the Secretary of State for a 60-day extension of the emergency rule, and on March 20, 1990 the DHCR filed permanent regulations with the Secretary of State, identical in substance to the emergency rule. Plaintiffs, by order to show cause, moved for a preliminary injunction enjoining the implementation of the permanent regulations on the same grounds used to attack the emergency regulation, and for leave to file a supplemental complaint to assert causes of action against the permanent regulations. Plaintiffs also served a demand for compliance with CPLR 5104, claiming that the promulgation of the permanent regulations violated the original TRO.

In the interim, on March 19, 1990 the defendant-intervenors moved by order to show cause to vacate the TRO on the [290]*290ground that this court’s March 13, 1990 decision in East 10th St. Assocs. v Estate of Goldstein (154 AD2d 142) established conclusively the lack of plaintiff’s likelihood of success on the merits. In East 10th St. Assocs. v Estate of Goldstein (supra), this court held that the extended definition of "family” set out in Braschi v Stahl Assocs. Co. (supra) and applied therein to a rent-controlled apartment, also controlled in the case of a rent-stabilized apartment in New York City, since "there is no significant distinction between the two regulatory schemes which would mandate a different definition of [the term] ’family’ ” (East 10th St. Assocs. v Estate of Goldstein, supra, at 145).

On April 4, 1990, the permanent regulations were published effective immediately. The IAS court, in an order entered April 10, 1990, provided that the TRO imposed by the Supreme Court, Albany County, on November 13, 1989 was extended to cover the permanent regulations, pending the court’s determination of the plaintiff’s motion for a preliminary injunction. The DHCR appealed.

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Bluebook (online)
164 A.D.2d 283, 562 N.Y.S.2d 962, 1990 N.Y. App. Div. LEXIS 14744, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rent-stabilization-assn-of-new-york-inc-v-higgins-nyappdiv-1990.