IG Second Generation Partners L.P. v. New York State Division of Housing & Community Renewal

OPINION OF THE COURT

Edward H. Lehner, J.

*230The sole issue raised in this CPLR article 78 proceeding is whether the respondent New York State Division of Housing and Community Renewal (DHCR) has the authority to waive any rent arrears owing as a result of its determination in a fair market rent appeal (FMRA) that the rental provided in the lease between the parties was in fact a fair market rent and thus the legal rent.

In 1990 the tenant intervenor Dru Arstark (the tenant) filed a FMRA claiming that the rental of $830 per month provided in her lease exceeded the fair market rent. Initially the…