Landlord Didn't Use Reserve Fund Monies to Pay for Improvements

(Decision submitted by James R. Marino of the Manhattan law firm of Kucker & Bruh, LLP, attorneys for the landlord.) Landlord applied for MCI rent hikes based on pointing and waterproofing. The DRA ruled for landlord. Tenants appealed, claiming that landlord used a cooperative reserve fund to pay for the improvements. The DHCR ruled against tenants. Although a 1997 tenant association newsletter stated that a small portion of the improvements would be paid for out of the reserve fund, review of landlord's corporate financial records from 1994 to 1998 showed that the reserve fund wasn't used to pay for the improvements, completed in June 1996. The records stated only that the reserve fund would be used in the future, not that it actually was used. In addition, landlord showed that there was a special assessment that covered the cost of the MCI.

60 Gramercy Park Tenants' Assn.: DHCR Adm. Rev. Dckt. No. NF430059RT (2/27/04) [2-pg. doc.]