Owners of rent regulated apartments may receive rent increases above and beyond the annual guideline increases when eligible building wide major capital improvements are performed.
The increase is amortized over 84 months, however, under existing law, the rent increases become a permanent part of the base rent and do not cease even when the 84 month period has been reached. An application for the major capital improvement rent increase is submitted to the New York State Division of Housing and Community Renewal (“DHCR”).
The application must contain photocopies of all contracts and checks and government permits, be signed by the owner and contractor and often require additional explanatory data. It is important to properly prepare all aspects of the application because tenants have a right to review and object to the application, and it is to be anticipated that tenants will file objections and often retain legal counsel to represent them.
The law firm of Tuchman, Korngold, Weiss, Liebman and Gelles, LLP, has been processing these applications since 1981, which dates back to a time prior to the DHCR coming into existence. The firm is fully prepared to deal with all facets of the application process which includes, responding to Petitions for Administrative Review as well as representing owners in subsequent appeals.