Building Doesn't Qualify for Hardship Increase

November 1, 2001

LVT Number: 15389

Landlord applied for hardship rent increases for five rent-controlled apartments he owned in a cooperative building. The DHCR ruled against landlord. Landlord appealed and lost. The DHCR found that the building had a net return of over 8.5 percent of its capital value, so it didn't qualify for a hardship increase. Landlord claimed that the co-op shareholders' income, not the building's, should be measured to determine hardship. But the court noted that the regulation was designed to protect the building, not individual investors, and so was reasonable.

Landlord applied for hardship rent increases for five rent-controlled apartments he owned in a cooperative building. The DHCR ruled against landlord. Landlord appealed and lost. The DHCR found that the building had a net return of over 8.5 percent of its capital value, so it didn't qualify for a hardship increase. Landlord claimed that the co-op shareholders' income, not the building's, should be measured to determine hardship. But the court noted that the regulation was designed to protect the building, not individual investors, and so was reasonable.

Hertz v. DHCR: NYLJ, 10/31/01, p. 18, col. 4 (Sup Ct. NY; Yates, J)

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