Matter of Filipski v New York State Div. of Hous. & Community Renewal

Holding The Appellate Division affirmed the denial of the petition to annul the DHCR determination, finding that the landlord satisfied its burden of proving the legitimacy of individual apartment improvements (IAIs) through contractor affidavits and receipts. The court held that the tenant’s personal observations were insufficient to establish a fraudulent scheme to deregulate the apartment.

The court’s words

Review of an apartment's rental history before the base date is permitted only where the tenant produces evidence of a fraudulent scheme to deregulate an apartment

2026 NY Slip Op 06244, at the official text

landlord had the burden of justifying the rent increase based on the claimed IAIs

2026 NY Slip Op 06244, at the official text

landlord provided several documents to establish that the claimed IAIs were legitimate, including a contractor affidavit and a work proposal

2026 NY Slip Op 06244, at the official text

petitioner failed to produce any relevant evidence to DHCR that the IAIs were fraudulent

2026 NY Slip Op 06244, at the official text

a tenant's personal observations regarding the condition of their apartment or quality or extent of improvements are insufficient indicia of fraud

2026 NY Slip Op 06244, at the official text