Matter of Transitional Services of New York for Long Island, Inc. v. New York State Office of Mental Health et al.

Summary

The New York Court of Appeals held that the New York State Office of Mental Health acted rationally and reasonably in classifying a nonprofit mental-health provider's apartment leasing expenses as operating costs rather than housing costs for reimbursement purposes. The court reversed the Appellate Division's order insofar as appealed from and dismissed the relevant portion of the CPLR article 78 petition; a related cross appeal was dismissed as moot.

Holdings

1. The Office of Mental Health's determination that the expenses were operating costs rather than housing costs was not irrational or unreasonable and therefore had to be upheld.

Questions Presented

1. Whether the Office of Mental Health rationally and reasonably interpreted the Mental Hygiene Law and its regulations to classify expenses for residential apartments used as offices as operating costs rather than housing costs for reimbursement purposes.

Disposition

reversed