Tenants Claim Co-op Reserve Fund Paid for MCI

Landlord applied for MCI rent hikes based on the installation of a new boiler/burner. The DRA ruled against landlord, finding that the building's co-op conversion sponsor had used reserve funds to pay for the MCI. Landlord appealed, claiming that it wasn't the sponsor and that no reserve funds were used for the MCI work. Landlord also argued that the ETPA didn't bar an MCI increase even if the sponsor's fund was used. The DHCR sent the case back to the DRA for further investigation. Landlord had answered the DRA's request for information on this question, but only stated that no sponsor reserve funds existed at the time landlord shareholders bought their units. Landlord didn't specify the source of the funds used to pay for the work done, and more information was needed before deciding the case.

90 Kingsbridge Owners: DHCR Adm. Rev. Docket No. ZJ710002RK (10/21/11) [2-pg. doc.]