On May 1, 2008, RSA and other real estate industry organizations participated in an “Owners’ Forum” held by DHCR. These meetings are intended by DHCR to brief owner representatives on new developments at DHCR and to hear from owners regarding their perspective of actions by the agency, which may range from procedural issues to more substantive concerns. Similar meetings are also held by DHCR with tenant organizations.
Commissioner Deborah Van Amerongen and other senior DHCR staff were in attendance.
The Deputy Commissioner for the Office of Rent Administration, Leslie Torres, updated attendees regarding the status of the MBR orders issued by DHCR and their intentions to review their procedures and improve the timeliness those orders. Also, DHCR now enables owners to file MBR Schedules and Fuel Cost Reports online through DHCR’s website. According to Deputy Commissioner Torres, online filing will enable DHCR to issue orders in a more timely fashion. This is part of DHCR’s efforts to improve the availability of information on its website. For example, we were informed that DHCR has begun to post some of the agency’s opinion letters online.
Various issues were raised with DHCR, including ongoing concerns regarding DHCR’s position on surcharges for pre-existing washing machines, its intention to propose regulations relating to demolition, burdensome information requests relating to MCIs, potential improvements in the agency’s forms and required lease rider, and “Golub notice” issues.
Owners should be aware that DHCR is scheduling more on-site inspections arising from major capital improvement rent increase applications. While the majority of the inspections result from tenants’ complaints that work was either not performed or was performed defectively, approximately 20% of DHCR’s inspections are random. DHCR reported that the inspections to-date indicate that the vast majority of the work is performed properly. DHCR also reported that it has restructured the organization of its mediation program so that if a complaint is not resolved at the mediation state, the case can be docketed immediately. DHCR stated that neither this action nor any of its other actions reflect any changes in policy or approach to the agency’s administration of the rent laws.
These meetings with DHCR present the industry with the opportunity to express its views and concerns on a wide range of issues. To make the most of this opportunity, the input of property owners is vital. If RSA members receive decisions or opinion letters from DHCR that are adverse to the interests of property owners, please contact Mitchell Posilkin, RSA’s Counsel, or Robin Bernstein, RSA’s Deputy Counsel.
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