Garage Increase in Mitchell-Lama Building Revoked

Facts: Landlord applied to HPD for permission to increase garage rents at a Mitchell-Lama housing complex. About 600 tenants at the 1,100 apartment complex parked their cars in the garage below the complex. Tenants' association opposed the application. HPD approved the 20-percent garage rent increases proposed by landlord, and tenants appealed. Landlord argued that HPD had rightfully approved the increases and that the Mitchell-Lama law was intended to maintain affordable residential rents---not low parking rates. Landlord claimed that this would force other tenants to subsidize garage users through rent increases. Court: Tenants win. The purpose of the Mitchell-Lama law is to provide low-rent housing and recreational and other facilities incidental to these rentals. Also, tenants showed that profits from the garage subsidized nonparking tenants. The court also found it ``remarkable'' that HPD had no regulations or guidelines governing parking fee increases for Mitchell-Lama projects. That was a violation of the New York City Charter, which requires public notice and comment before establishing rules fixing charges by a city agency. The court declared the garage increases null and void, and ordered HPD to promulgate rules and regulations governing garage rate increases at more appropriate amounts than those challenged.

[Waterside Tenants Association v. Waterside Redevelopment Co.: NYLJ, p. 22, col. 5 (1/20/93) (Sup. Ct. NY; Crane, J)].