Co-op Reserve Fund Not Used to Pay for MCI

Landlord applied for MCI rent hikes based on pointing/waterproofing and related engineering costs. The DRA ruled against landlord, finding that the work was paid for from the cooperative building's reserve fund. Landlord appealed and won. Landlord submitted documentation showing that the co-op's initial reserve fund, deposited by the co-op conversion sponsor, had been fully depleted in 1996. This was some time before the MCI was performed in 2000. So landlord was entitled to collect MCI rent hikes for the work done.

105 West 73rd Street: DHCR Adm. Rev. Docket No. UK430031RO (4/6/12) [4-pg. doc.]