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Regina Metropolitan: What Practitioners Need to Know
On April 2, 2020, the Court of Appeals, by a 4-3 margin, issued a lengthy and groundbreaking decision in Regina Metro Co. v New York State Div. of Hous. & Community Renewal. The decision collectively decided four rent overcharge cases arising from Roberts v Tishman Speyer Props., L.P., 13 NY3d 270 (2009), wherein the Court of Appeals had ruled that luxury deregulation was unavailable in buildings receiving J-51 benefits. The landlords in Regina had deregulated various apartments based on advice from DHCR that luxury deregulation was not prohibited in such buildings. The question in Regina was how to compute base rents and rent overcharges in such cases.
The issue was further complicated by the enactment of Part F of the Housing Stabilization and Tenant Protection Act (HSTPA) on June 14, 2019. The Part F amendments dramatically altered how overcharges were to be computed.
The majority opinion in Regina is 57 pages long, and the dissenting opinion consists of 52 pages. Accordingly, this article will focus on what the Court did and did not decide in Regina, and how its holding affects pending overcharge cases.
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