Part of Improvements Paid Out of Co-op Fund

July 31, 1994

LVT Number: 8971

Co-op sponsor applied for MCI rent hikes based on the replacement of windows. Sponsor claimed the replacement windows qualified for an MCI increase because they were more energy-efficient than the existing windows. The DRA granted sponsor's application, and tenants appealed. The DHCR revoked the rent hikes, and sponsor appealed. The appeals court ruled for sponsor, in part, allowing a 50 percent MCI increase for the windows. Sponsor had used the co-op reserve fund to pay for 50 percent of the window replacement job.

Co-op sponsor applied for MCI rent hikes based on the replacement of windows. Sponsor claimed the replacement windows qualified for an MCI increase because they were more energy-efficient than the existing windows. The DRA granted sponsor's application, and tenants appealed. The DHCR revoked the rent hikes, and sponsor appealed. The appeals court ruled for sponsor, in part, allowing a 50 percent MCI increase for the windows. Sponsor had used the co-op reserve fund to pay for 50 percent of the window replacement job. Sponsor can only get a rent hike for the part of the cost that didn't come from the co-op fund.

Matter of Metropolitan Associates Limited Partnership: NYLJ, p. 26, col. 1 (7/7/94) (App. Div. 1 Dept.; Sullivan, JP, Carro, Ellerin, Asch, Tom, JJ)

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