MATTER OF 225 E. 70TH ST. CORP. v. Weaver

This appeal, here by permission of the Appellate Division, poses a question which has been frequently litigated during the past several years: may rent increases, granted by the State Rent Administrator, to compensate a landlord for the installation of a capital improvement be revised by the Administrator when the landlord thereafter obtains an abatement of taxes by reason of the same improvement?

The appellant owns a 20-family tenement in New York City, which it purchased in 1957. Up to 1955 the premises consisted of cold water unheated flats. In that year, the appellant’s predecessor in…