58 A.D.2d 764 | N.Y. App. Div. | 1977
Judgment, Supreme Court, New York County, entered December 2, 1976, dismissing the petition, affirmed, without costs and without disbursements. Lee Goodwin, as Commissioner of Housing and Community Renewal of the State of New York, after hearings held, granted a rental increase to Winthrop Gardens, Inc. Winthrop, as a limited-profit housing corporation, must apply for any rental increase and must document the need therefor (Private Housing Finance Law, § 31). In the case at bar, after Winthrop made application for an increase, extensive hearings were held and all parties concerned were afforded an opportunity to present relevant evidence. The commissioner, after reviewing the evidence, granted a $6-per-room rental which, according to her projections, would cover any increased running expenses for the next four years and pay current dividends. Winthrop instituted this article 78 proceeding, claiming that the increases granted were insufficient. It is urged that investors in limited-profit housing corporations are entitled to a 6% return on their investment (Private Housing Finance Law, § 28), and that such return has not materialized for several years. The rent increase granted by the commissioner took into account projection of costs over the next four years and properly balanced the needs of the tenants for rentals within their means and that of the investors for a return on their investment (Private Housing Finance Law, §§ 11, 11-a). The Private Housing Finance Law contemplates just such a situation which has here occurred (viz., arrearage in the payment of dividends) and provides that such arrearages accumulate (Private Housing Finance Law, §28, subd 1), ultimately to be paid by granting of future
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