In Matter of Brightwater Towers Assoc. v. New York State Div. of Hous. & Community Renewal, 212 AD2d 603, 622 NYS2d 548 [2d Dept 1995], the Appellate Division reviewed the lower court's determination in a CPLR article 78 proceeding. The specific issue before the Court was whether the initial rent for rent stabilization purposes, after the project was no longer subject to Mitchell-Lama regulations, should include income-based surcharges. The Appellate Division held that the Commissioner's determination that income surcharges should be included in the initial regulated rent was not unreasonable. "The Rent Stabilization Code provides that, for housing accommodations where rentals were previously regulated under the Private Housing Finance Law, 'the initial legal registered rent shall be the rent charged to and paid by the tenant in occupancy on the date such regulation ends.' Moreover, Private Housing Finance Law regulations provide, inter alia, that the rent entered on a lease shall include surcharges being assessed against the tenant" (id. at 604-605 ). The same decision held that a non-income-based surcharge should not have been included in the calculation of the tenants' initial rent (id. at 604).