No Proof Co-op Reserve Fund Used to Pay for MCI

Landlord applied for MCI rent hikes based on installation of a new water tower and facade restoration. The DRA ruled for landlord. Tenant appealed, claiming that because the building was a cooperative, the MCI was paid for from the co-op's cash reserve fund. The DHCR ruled against tenant. Landlord had stated that the co-op's reserve fund had been spent years ago. Landlord had also submitted copies of the building's Offering Plan and annual financial statements. These documents showed that the initial cash reserve set up by the co-op sponsor was spent long before landlord started the MCI work.

Gustin: DHCR Adm. Rev. Docket No. SD430046RT (3/7/07) [2-pg. doc.]