Improvements Subsidized by Not-for-Profit Housing Company

The DRA initially ruled for landlord, granting her application for MCI rent increases based on new windows. The DRA later revoked that order because funds for the window installation came from a WESTHAB grant. WESTHAB is a not-for-profit housing corporation that provides funds for rehabilitating properties in exchange for providing housing for homeless families. Landlord appealed, claiming that she didn't use the WESTHAB money to pay for the windows. The DHCR ruled against landlord. WESTHAB issued two subsidy payments to landlord totalling over $18,000. A letter from WESTHAB to the DHCR stated that the subsidy payments were contributions toward the cost of the window installation. Landlord didn't show sufficient proof that the money wasn't used for this purpose. And although landlord claimed that she used the rehabilitation money for other improvements, she had pending MCI applications for that other work.

McBain: DHCR Adm. Rev. Dckt. No. FC 810237 RO (3/23/95) [2-page document]