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DHCR denies MBR increases in error.

The New Your State Division of Housing and Community Renewal (DHCR) denied Maximum Base Rent (MBR) increases to approximately 3,400 owners of rent controlled apartments without checking owners' submissions of building repairs, according to Dan Margulies, executive director of the Community Housing Improvement Program (CHIP), an organization that represents property owners interests.

DHCR sent computer-generated MBR denials to those buildings which are listed on City Housing Department records as having uncorrected violations. Margulies notes the latest denials were sent to all buildings in which determinations were still pending despite owners' submissions of repair bills, architect's certifications, and other records of correction.

In response to the denials, CHIP has asked DHCR to stay all the orders pending review. Margulies received verbal acknowledgement of the problem but encourages owners to file formal challenges against the denial orders to protect their rights until they receive written notice of a stay.

"This latest move by DHCR will cost owners and the state a lot of money," said Margulies. In addition to the expense and time consumed by filing and processing challenges, Margulies notes owners will lose retroactive rent increases from tenants who move or die before the MBR orders are properly settled.

"This is just one more example that proves automation is not the solution to rent administration problems," he said. "The system is just too complex to work."
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Title Annotation:NY State Division of Housing and Community Renewal, maximum base rent
Publication:Real Estate Weekly
Article Type:Brief Article
Date:Apr 22, 1992
Previous Article:Alexander G. Hesterberg.
Next Article:PSE&G begins foundation for affordable housing.

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