Raphael v. Herman

Summary

The court reviewed an administrative determination ordering an increase in maximum rents under New York's rent law. It held that the sales price was an appropriate basis for calculating the hardship increase because the transaction was bona fide and reflective of value, and it upheld the finding that essential services were maintained. The petition was dismissed.

Holdings

1. The Administrator properly used the sales price because the record supported the determination that the sale was bona fide, negotiated at arm's length, and not made solely to obtain rent increases; under the applicable statute, the sales price was therefore required to be used as the basis for calculating the increase.
2. The challenge to the determination failed because the Administrator's contrary finding regarding maintenance of essential services was supported by investigative reports and other evidence in the record.

Questions Presented

1. Whether the Administrator properly used the property's sales price as the basis for calculating a hardship rent increase.
2. Whether the record supported the finding that essential services were being maintained.

Disposition

dismissed