Is it illegal for tenants to rent a room (used for meetings) at all? $ 10 The development is a Mitchell-Lama Rental regulated by DHCR. Tenant Associations are allowed to fundraise; however, the people collecting a fee for room rental are not apart of the recognized Tenants Association. Management does not charge the Tenant Association for using the Community Room and each building has a meeting room.
The officially recognized tenants association usually has control (under management supervision) of the community room in a Mitchell Lama rental. Management may, however, still rent out the room for a fee under appropriate circumstances.
If the fee is not going to the tenants association, it should be booked as income to the housing company for accounting purposes. (Recall that Mitchell Lama rent increases are based on the actual costs and expenses of the housing company.)