Argued June 6, 1990 Decided June 28, 1990 Appeal from the Appellate Division of the Supreme Court in the Second Judicial Department, Joan M. Durante, J. Allen H. Weiss and Michael W. Gunzburg for appellants. Iris J. Korman, Dennis B. Hasher and Rudolph Rosa Di Sant for respondent. KAYE, J. A regulation promulgated by the Division of Housing and Community Renewal (the DHCR) which prohibits rent increases for major capital improvements (MCI's) funded out of the cash reserve fund established by a newly
(a) Unless otherwise prohibited by occupancy restrictions based upon income limitations pursuant to Federal or State law, regulations or other requirements of governmental agencies, if a tenant or cooperator has permanently vacated their dwelling unit, any family member, as defined in section 1700.2(a)(7) of this Title, who meets all of the following requirements shall be entitled to be named as a tenant on the lease and/or as a stockholder on the stock certificate of such unit. Such family members
(a) Where a tenant/cooperator has died, the lease and the shares of stock for such decedent's apartment shall be surrendered by the decedent's estate or survivors for redemption. The housing company upon written request received from any member of such tenant's or cooperator's family who has resided with the tenant or cooperator in the dwelling unit as a primary residence and pursuant to the provisions of this section and the Private Housing Finance Law, shall sell or transfer the shares and the