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HDFC No lease tenant has a few questions

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HDFC No lease tenant has a few questions

Postby lgreene » Sat Dec 02, 2006 8:35 pm

I live in an HDFC building and have no lease (going on 3 years out of my 5 there). The landloard (board president) has not accounted my rent payments accurately and constantly says I owe a balance (I have an account of my payments).

She raised my rent 33% through a lawyer and provided no valid criteria on the increase. The letter stated it was based on my income and I have not provided (nor was it requested) the board with any income statements (w2 etc).

Building decisions are made only exclusively by her and her alone. She is the person that runs this co-op as if it belongs to her! She acts as the management, treasurer and board president!

What are my rights as a no-lease tenant?
How can I find the by-laws of this buildings board?
How often and how high can she raise my rent?
Are the records not subject to an audit? I believe there may be a mis-appropriation of funds. Most specifically MY funds!
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Postby TenantNet » Sun Dec 03, 2006 4:40 am

We asked a person quite knowlegable with HDFC's, who replied:

HDFC cooperatives are not subject to rent control or rent stabilization laws.

From your description sounds like you live in dysfunctional HDFC cooperative, the first symptom of which is the reference to the "President" as being the one who runs the place by herself.

The HDFC cooperatives By-Laws require a Board of Directors to be elected annually by the shareholders. Those Directors have all the necessary corporate powers to manage and operate the cooperative corporation and have total fiduciary responsibility as well as the responsibility for governance and management.

There must a Board of Directors that you may appeal your case. That does not mean that they would act otherwise but it could if they wanted to.

I am always concerned when I hear of "one person making all decisions and running the place" for that is symptomatic of many other problems that affect the well being of the shareholders and tenants.

As a Tenant you have the same rights of any rent unregulated building and if you feel your rights are being violated you should seek legal counsel and proceed with legal action.

You may request copies of the By-Laws from the Board of Directors but as you are not a shareholder a copy of them may be denied to you.

If you have a lease as often as the lease is renewed for whatever amount the Board of Directors determines necessary.

HDFC cooperatives as any of the housing cooperative must maintain proper and accurate records for their shareholders. Again you not being a shareholder have no right to the financial reports of a private corporation unless they willingly make them availalbe.

HDFC cooperatives do have some oversight by HPD, you can try and contact HPD Afte Sales Office at 100 Gold Street, 7th Fl. (212) 863-5000. However not being a shareholder, HPD may be sympathetic but do nothing or if there is a history of complaints by shareholders HPD may require an Audit of their finances, but I doubt they would interfere with the rent-setting powers of the Board.
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Postby Aubergine » Sun Dec 03, 2006 12:46 pm

TenantNet wrote:We asked a person quite knowlegable with HDFC's, who replied:

There must a Board of Directors that you may appeal your case. That does not mean that they would act otherwise but it could if they wanted to.
The way this was put could be confusing. A tenant does not have a right to appeal the landlord's decisions to the landlord's board of directors. The tenant can certainly contact the co-op board members, but from the description, the co-op is under the control of the president and the board is probably unwilling to go against her.
As a Tenant you have the same rights of any rent unregulated building
Actually, tenants in formerly city-owned HDFC co-ops have significantly greater protection against eviction than tenants in other private, unregulated housing. The courts have held that these tenants may be evicted only upon a showing of "good cause," whether or not they have a lease. But rents for tenants in these buildings are not regulated, even though the buildings were supposedly to be used as "low-income housing" for persons or families whose income did not exceed six times the rent.
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