50% Surcharge Cap Not Required in Mitchell-Lama Building

August 31, 2001

LVT Number: 15240

Facts: Tenants in a Mitchell-Lama building sued the DHCR and landlord. They wanted the DHCR to create a 50 percent surcharge cap to be imposed on over-income tenants. The DHCR had approved a 20 percent surcharge cap for their building. The court ruled against tenants and dismissed their case. Tenants appealed. Court: Tenants lose. The DHCR reasonably interpreted the Private Housing Finance Law to permit Mitchell-Lama cooperative buildings to set their own surcharge schedules. And tenants' building had set a 20 percent surcharge cap, not a 50 percent one.

Facts: Tenants in a Mitchell-Lama building sued the DHCR and landlord. They wanted the DHCR to create a 50 percent surcharge cap to be imposed on over-income tenants. The DHCR had approved a 20 percent surcharge cap for their building. The court ruled against tenants and dismissed their case. Tenants appealed. Court: Tenants lose. The DHCR reasonably interpreted the Private Housing Finance Law to permit Mitchell-Lama cooperative buildings to set their own surcharge schedules. And tenants' building had set a 20 percent surcharge cap, not a 50 percent one.

Vink v. DHCR: NYLJ, 8/30/01, p. 17, col. 3 (App. Div.1 Dept.; Williams, JP, Tom, Mazzarelli, Lerner, Rubin, JJ)

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