Croes Nest Realty, LP v. New York State Division of Housing & Community Renewal

Petitioner owns a residential building, formerly governed by city regulations under the Mitchell-Lama program pursuant to which petitioner was required to, inter alia, provide the tenants access to a community room used for parties and other gatherings. Access to the community room became one of the required services under the Rent Stabilization Law upon the building’s withdrawal from the Mitchell-Lama program and entry into rent stabilization (see Rent Stabilization Code [9 NYCRR] § 2520.6 [r]). The rent-stabilized tenants commenced a proceeding with DHCR, based on petitioner’s closing of…