Sol Goldman Investments LLC, owner of a two-building apartment complex, submitted an application for a $537,358.33 major capital improvement rent-increase to the New York State Division of Housing and Community Renewal (DHCR) after it installed a new boiler, burner, and water tank. While DHCR granted the request in substantial part, it denied $17,900 attributable to a professional engineer’s consulting fees--which the agency deemed “administrative and supervisory” and “duplicative” of the contractor’s work.
On administrative review, the New York County Supreme Court denied Goldman’s challenge of that determination but, on appeal, the Appellate Division, First Department, reversed.
Since the facts were identical to other cases where the agency had approved the charge, DHCR’s failure to explain why it departed from its prior precedent rendered the determination arbitrary and capricious.
Same facts, same rule.
To view a copy of the Appellate Division’s decision, please use this link: Matter of Sol Goldman Invs. LLC v New York State Div. of Hous. & Community Renewal