Parkchester Management Corp. v. Rent Stabilization Ass'n of New York, Inc., 56 A.D.2d 402 (1977)

ETPA was signed by the Governor on May 29, 1974; but pursuant to its local option provisions, the act did not take effect in New York City until July 1, 1974. To cover cases where rent increases took effect in the interim period, RSA, with the approval of HDA, adopted section 35B of its code of regulations giving to the New York City Conciliation and Appeals Board (CAB), whose members are appointed by the Mayor, power to adjust the "Initial Legal Registered Rent” (the basis of future rent increases), where the rent was increased during the period May 29, 1974 to June 30, 1974, upon a finding that the increase was unconscionable. We think this regulation is within the rule making powers of RSA and HDA in implementing the quasi voluntary system of rent stabilization. (See, e.g., Johnson & Co. v Securities & Exch. Comm., 198 F2d 690 [1952], cert den 344 US 855 [1952]; Stracquadanio v Department of Health, 285 NY 93 [1941].) It bears a reasonable relation to the legislative scheme of rent stabilization. It is not irrational, arbitrary or capricious.