STATE OF NEW YORK
                     DIVISION OF HOUSING AND COMMUNITY RENEWAL
                           OFFICE OF RENT ADMINISTRATION
                                    GERTZ PLAZA
                              92-31 UNION HALL STREET
                              JAMAICA, NEW YORK 11433

     ------------------------------------X 
     IN THE MATTER OF THE ADMINISTRATIVE :  ADMINISTRATIVE REVIEW
     APPEAL OF                              DOCKET NO. AI 130068-RT
                                         :  
                                            DISTRICT RENT ADMINISTRATOR'S
       ROBERT LEIDERMAN                     DOCKET NO. QCS 000707-OM
                           PETITIONER    : 
     ------------------------------------X                             

           ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW

     On September 24, 1986 the above-named petitioner-tenant filed  a  Petition
     for Administrative Review against an order issued on September 8, 1986  by
     the Rent  Administrator,  92-31  Union  Hall  Street,  Jamaica,  New  York
     concerning housing accommodations known  as  68-63  108th  Street,  Forest
     Hills, New York, Apartment 2-B, wherein  the  Administrator  authorized  a
     rent increase for the installation of n w  replacement  windows  building-
     wide.  

     The Commissioner has reviewed all of the evidence in the  record  and  has
     carefully considered that portion of the record  relevant  to  the  issues
     raised by the administrative appeal.

     This proceeding  stems  from  an  application  initially  filed  with  the
     Division on September 13, 1985 in  response  to  which  the  tenant  named
     herein alleged  among  other  things,  that  windows  were  not  installed
     building-wide since hallway windows were not replaced and that in 1982  he
     installed storm windows in his apartment.  

     On September 8, 1986 the Administrator issued the  order  appealed  herein
     granting the owner's application.

     In this  petition  for  Administrative  Review  the  tenant  contends,  in
     substance that the Administrator failed to  consider  his  answer  to  the
     application, that the applicant in the instant proceeding  (Winthrop  Apt.
     Corp.) is not the owner of his cooperative apartment (2-B) and thus is not 
     entitled to a rent increase; that insufficient  information  was  provided
     him as a rent controlled tenant, to file for  a  share  of  tax  abatement
     benefits received by the owner; and that the Administrator  did  not  take
     into account tax benefits received for the installation.

     The Commissioner notes that the owner had submitted the contract  for  the
     work in question, the contractors certification and  cancelled  checks  in
     substantiation of the cost of same.

     In response to the tenant's  petition  the  landlord's  agent  states,  in
     substance,  that  the  owner  of  this  cooperatively  owned  building  is
     Winthrop Apts. Corp; and  that  no  tax  abatement  was  granted  for  the
     replacement windows installed in the subject building.

     The Commissioner is of the opinion that this petition should be denied.






          DOCKET NUMBER: AI 130068-RT
     It is the established position of the Division as reflected in Operational 
     Bulletin  84-4  and  Policy  Statement   89-6   that   the   building-wide
     installation of all apartment windows and/or public area windows which are 
     25 or more years old constitute a MCI for which a  rent  increase  may  be
     warranted.

     The Commissioner notes that for work to qualify as  a  MCI  it  must  meet
     various criteria,  one  of  which  is  that  the  installation  be  deemed
     depreciable under the Internal Revenue Code.  Thus the fact  the  landlord
     may be entitled to certain tax advantages does not preclude  a  landlord's
     entitlement to a MCI rent adjustment, if otherwise so entitled.

     The Commissioner further  notes  that  Supplement  No.  1  to  Operational
     Bulletin 84-4 provides,  in  pertinent  part,  that  in  the  interest  of
     preventing a multiplicity  of  proceedings,  the  managing  agent  for  an
     eligible cooperative corporation must file the  application  for  a  major
     capital  improvement  increase  on  behalf  of  the  corporation  and  all
     proprietary lessees, including the sponsor.

     While there is administrative provision for  tenants  of  rent  controlled
     apartments to share in the benefit of such tax abatement benefits  as  may
     be received by a landlord, the records of the Division fails  to  disclose
     that tax abatement was,  in  fact,  granted  for  the  work  in  question.
     However, this determination is without  prejudice  to  the  right  of  the
     tenant to make appropriate application to the  Owner  Individual  Unit  of
     this Division at such time as and in the event that tax abatement benefits 
     are obtained for this improvement.

     The tenants allegation that he incurred the expense  of  installing  storm
     windows  in  his  apartment  (without  the  consent  of  the   owner)   is
     unsubstantiated  and   insufficient   to   warrant   revocation   of   the
     Administrator's order.

     Based  upon  the  entire  record,  the   Commissioner   finds   that   the
     Administrator's order is correct and should be affirmed.

     THEREFORE, in accordance with the provisions  of  the  Rent  and  Eviction
     Regulations for New York City, it is

     ORDERED, that this petition for administrative review  be,  and  the  same
     hereby is denied; and that the order of the Rent Administrator be, and the 
     same hereby is affirmed.

     ISSUED:




                                                                   
                                          JOSEPH A. D'AGOSTA
                                       Acting Deputy Commissioner



                                                   
    

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