Co-op Apartment Shareholder Can Apply for MBR Increase

Landlord applied for MBR increase for rent-controlled tenant during 2008-09 biennial cycle. The DRA ruled for landlord. Tenant appealed, claiming that landlord wasn't entitled to collect MBR increase. Landlord wasn't the owner of the building but the cooperative shareholder who held the proprietary lease to the apartment. The building had converted to co-op ownership at one time, and tenant remained as a nonpurchasing tenant. Tenant argued that landlord didn't incur the operating and maintenance expenses for the building that were required to qualify for an MBR order of eligibility. The DHCR ruled against tenant. In a prior decision, the DRA ruled in 2007 that landlord was entitled to collect the MBR increase from tenant if the terms and conditions of eligibility had been met. Tenant never appealed that decision. So tenant was bound by the ruling in the prior case.

Monaco: DHCR Adm. Rev. Docket No. WG420016RT (8/7/08) [2-pg. doc.]