DHCR Improperly Increased Rates for Mitchell-Lama Co-op Tenants

March 1, 2010

LVT Number: #22509

Tenants appealed a DHCR decision to unilaterally increase the maximum surcharge schedule for over-income tenants of Mitchell-Lama co-op housing to 30 percent and increase the maintenance charges by 2.1 percent. Tenants claimed that the DHCR’s decision was arbitrary and unreasonable. The court ruled against tenants. Tenants appealed and won. The Private Housing Finance Law clearly states that the schedule of surcharges should be promulgated by the building’s landlord “with the approval” of the DHCR.

Tenants appealed a DHCR decision to unilaterally increase the maximum surcharge schedule for over-income tenants of Mitchell-Lama co-op housing to 30 percent and increase the maintenance charges by 2.1 percent. Tenants claimed that the DHCR’s decision was arbitrary and unreasonable. The court ruled against tenants. Tenants appealed and won. The Private Housing Finance Law clearly states that the schedule of surcharges should be promulgated by the building’s landlord “with the approval” of the DHCR. The case was sent back to the DHCR for further proceedings.

 

Rivercross Tenants Corp. v. DHCR: NYLJ, 2/26/10, p. 33, col. 1 (App. Div. 1 Dept.; Gonzalez, PJ, Mazzarelli, Nardelli, Acosta, Abdus-Salaam, JJ)

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