The primary focus of the meeting was to address the recalculation of hardship rent increases for two properties owned by 2011 St. Paul’s Conversion Corp. The attorney for the landlord was unable to attend due to hospitalization, so Sean Kilby from Rockport Management represented the landlord. The board had approved a provisional hardship increase in May, but the formula used was incorrect, failing to account for confirmed operating losses. It was necessary to switch from a per-unit to a per-square-footage calculation to accurately reflect the financial situation of the properties. For 10 Huron Avenue, the annual operating loss was reported at $72,556.55, with a hardship increase allowing for a proposed monthly increase of $8,758.90. Meanwhile, 2011 St. Paul’s Avenue had an operating loss of $24,864.75, leading to a proposed monthly increase of $4,573.30.

The board members discussed the importance of ensuring compliance with all previous violations, which were confirmed to have been resolved. Commissioner Eco made a motion to remand the case back to the bureau for a recommendation regarding the increase amount and to confirm compliance, which was seconded by Commissioner Isakov. The board emphasized the necessity of revising the calculation method to ensure fairness for both tenants and landlords.

The meeting also addressed a request to apply the hardship increase retroactively, which was not permissible under state law. The board clarified that any rent increases would be effective from the date of the decision, not retroactively. This led to a consensus that the landlord’s request could not be fulfilled. The landlord’s representative confirmed that the full rent increase would be applied immediately upon approval, acknowledging that some rents could rise by as much as 100%, attributed to long-standing operating deficits, rising maintenance fees, and property taxes. The buildings were undergoing necessary renovations mandated by the state, contributing to the financial strain on the property owners.

The meeting also highlighted communication issues concerning the scheduling of the hearing. Attorney Roberto Tarkin and Steve Lipsky expressed frustration over the meeting’s reinstatement on short notice after receiving confirmation of its cancellation. This resulted in confusion and scheduling conflicts for those wishing to attend. Despite these concerns, the board determined that the reported violations were not severe enough to delay proceedings.

A significant portion of the meeting was dedicated to reviewing amended calculations related to hardship increases. The board scrutinized documented expenses provided by the property owner, excluding certain costs due to a lack of proof regarding their relevance to the properties. The properties had not been inspected since 2024, but this had been rectified. Public comments were invited, but no attendees chose to speak. The board proceeded to accept the recommendations of the rent leveling bureau based on the revised hardship rental increases. A motion to accept the recommendations passed with a majority vote, followed by a motion to adjourn, which was unanimously approved.