Justice Yvonne Lewis
Clarendon Properties previously filed a Petition for Administrative Review (PAR) challenging a Rent Administrator’s (RA) order establishing the lawful regulated rent for the subject apartment. Division of Housing and Community Renewal (DHCR) denied the PAR, and Clarendon argued DHCR’s order was arbitrary. Clarendon alleged the RA’s decision was improper as tenant’s status and that legal regulated rent set for the premises was improper, arguing a rent ledger was unreliable. DHCR contended it had a rational basis for its determination in the PAR as a prior DHCR order established the tenant was the tenant of record. It also noted it had a rational basis for setting tenant’s rent at $250 a month as rent arrears for the month Clarendon purchased the building, along with eight months prior to that, was set at $250 a month. The court found Clarendon failed to submit any documentation supporting its assertion that the legal regulated rent should be something other than $250. It stated as the information used to decide the rent was provided by Clarendon itself, it was reasonable to conclude DHCR was rational in setting the rate at $250. Thus, the order was not arbitrary, and denial of the PAR was upheld.
