MCI Funded by Co-op Building Special Assessment

Landlord of a cooperative building with rent-stabilized tenants applied for MCI rent hikes based on facade restoration. The DRA ruled for landlord. Tenants appealed and lost. Tenants claimed no increase should be granted because the MCI was paid for from the building's reserve fund. But landlord showed that it paid for the improvement out of special assessments charged to the co-op shareholders and not from a reserve fund. So landlord was entitled to collect MCI rent hikes from the rent-stabilized tenants.

331 West 89th Street: DHCR Adm. Rev. Docket No. WJ410049RT (6/27/13) [1-pg. doc.]