ALBANY, N.Y. (Map, News) - New York's highest court says a state agency cannot dismiss $19,000 in back rent owed by a tenant of a rent-stabilized Manhattan apartment following a protracted administrative dispute with the landlord that began in 1990.

The Court of Appeals majority, in a 5-2 ruling, says no statute or regulation permits the Division of Housing and Community Renewal to forgive rent arrears as a consequence of its decision in a fair market rent appeal.

In a dissent, two judges backed the agency's interpretation of its authority to consider all factors and make the rent hike payable going forward, not retroactively. They noted the law for establishing fair market rent changed to the landlord's advantage in 1997.