Court Upholds DHCR 30% Max Maint. Surcharge Against Rivercross

In an Article 78 proceeding brought by Roosevelt Island's Rivercross Tenants Corporation against the Department of Housing and Community Renewal the trial court ruled that the DHCR order to increase the maximum maintenance surcharge from 20% to 30% be upheld.

In an internal memo, dated November 26, 2008, circulated among the tenant shareholders, the Rivercross Board announced it intends to appeal the decision to the Appellate Division. The memo indicated that it would be about 6 months before any decision could be expected in their appeal.

The Rivercross Board asserts as one component to their case that in 2001 the DHCR argued that Mitchell Lama Coops be allowed to set their own surcharge schedule and that now DHCR is claiming that the Coop Board now not be allowed that to do just that.

The Roosevelt Islander discussed this case with a good amount of background info this past August linked HERE.

WIRE: Rivercross Surcharge & Maintenance Hike

According to an email report by the Main Street WIRE

:

"DHCR Plans Hike in Rivercross Surcharge

DHCR plans to order an increase in the Rivercross surcharge, levied on residents whose income exceeds the maximum allowed in a building, from 20% to 30%, according to an e-mail from DHCR Commissioner Deborah van Amerongen to Assemblymember Micah Kellner.

Van Amerongen said that DHCR staff called the building's managing agent today with the news. In addition, DHCR has approved an increase in maintenance charges which, if levied in one step, would be $7.45 per room (about 2.5%) per month (or $4.97/room/month if levied in two steps).

With regard to the surcharge increase, van Amerongen wrote, "...the [Rivercross] Board will be informed of our decision sometime today. If they decide to challenge this that is of course their right, we will argue the case in court.""