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Matter of 88-05 171 LLC v. New York State Division of Housing and Community Renewal, 2024 WL 3882224, AppDiv, Second Dept. (memorandum opinion)
In landlord's article 78 proceeding challenging a reduction in rent, landlord appealed from Supreme Court's denial of the petition. The Appellate Division affirmed, holding that DHCR had a rational basis for determining that charges for keys constituted a decrease in services.
Landlord changed the front entrance door lock on an apartment building from a traditional door lock to one with non-duplicable keys. Tenants contended that landlord did not provide each tenant with a sufficient number of non-duplicable keys and charged $50 to $250 for each additional key. Tenants filed an application for a rent reduction based on a decrease in services, and the rent administrator directed a reduction in rent. A deputy commissioner denied landlord's petition for administrative review, and Supreme Court upheld the determination.
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