DOC. NO.: AI 210062-RT
STATE OF NEW YORK
DIVISION OF HOUSING AND COMMUNITY RENEWAL
OFFICE OF RENT ADMINISTRATION
92-31 UNION HALL STREET
JAMAICA, NEW YORK 11433
IN THE MATTER OF THE ADMINISTRATIVE : ADMINISTRATIVE REVIEW
APPEAL OF DOCKET NO. AI 210062-RT
D.R.O. DOC. NO.
MAXINE DAVIS, : K 000462-OM
ORDER AND OPINION DENYING ADMINISTRATIVE APPEAL
On September 29, 1986, the above-named tenant-representative filed
a Petition for Administrative Review against an order issued August
26, 1986, by a Rent Administrator, concerning various apartments at
1633-1647 Sterling Place, Brooklyn, New York, wherein the
Administrator granted in part the application of the owner to
increase the rentals based on installation of major capital
The issue on appeal is whether the Administrator's order was
The Commissioner has reviewed all the evidence in the record and
has carefully considered that portion of the record relevant to
the issues raised in the administrative appeal.
The owner commenced the proceeding in May 1985 by filing an
application to increase the rentals for rent controlled and rent
stabilized apartments based on the installation of major capital
improvements consisting of a new burner and complete rewiring of
the 70-apartment building. The owner claimed costs of $52,250.00
for the rewiring and $18,800.00 for the new oil/gas burner.
In response to the owner's application, nineteen tenants filed
answers contending, in substance, that the work done constituted
ordinary repairs and not improvements, and that the electrical
outlets were inconveniently-placed and unnecessary. Two tenants
specifically complained that at times they still had insufficient
heat or hot water; one alleged that the new boiler wasn't heating
any better than the original one.
DOC. NO.: AI 210062-RT
On September 26, 1986, the Administrator issued the order under
review, finding that the installations qualified as major capital
improvements, and determined that the owner's application
complied with relevant laws and regulations based upon the
supporting documentation and requisite governmental approvals
submitted by the owner, and allowed appropriate rent increases
for the rent-controlled and rent-stabilized tenants.
In this petition, the tenant-representative contends that the
replacement of the boiler constituted ordinary maintenance, that
the new boiler does not function properly, and that the wiring
was unnecessary and did not constitute a "rewiring" as approved
by the Division. The petitioner also asserts that the tenants
should receive a reduction in rent for the owner's failure to
provide proper services and maintenance for the building.
The owner responded, in substance, that the Administrator
properly allowed the major capital improvement rent increases,
and that he is collecting the correct rent allowed.
The Commissioner finds that the petition should be denied.
Section 2522.4 of the Rent Stabilization Code provides, in
pertinent part, that an owner qualifies for a rent increase when
there has been a building-wide major capital improvement. For an
item to constitute a major capital improvement, it must be deemed
depreciable under the Internal Revenue Code, must be done for the
operation, preservation and maintenance of the structure, and be
an improvement to the premises which inures directly or
indirectly to the benefit of all tenants. Regarding the tenant's
assertion that the boiler constituted ordinary maintenance, the
Division of Housing and Community Renewal and its predecessor
agencies have consistently held that new boilers qualify as major
Adequate rewiring is sufficient if the work results in the
installation of new copper risers and feeders extending from the
property box in the basement to every housing accommodation; it
must be of sufficient capacity to accommodate the installation of
air conditioner circuits in living room and/or bedroom. The
Commissioner finds that the wiring approved by the Administrator
as a major capital improvement meets these requirements, and that
the petitioner's contentions are not sufficient to disturb the
decision of the Administrator.
DOC. NO.: AI 210062-RT
A review of the record discloses that the owner substantiated its
MCI application with the requisite documentation, including
specifications, copies of contracts, governmental inspections,
and cancelled checks for the work herein.
This order is issued without prejudice to the filing by the
tenants of complaint of reduced services with the Division,
should the facts so warrant.
THEREFORE, in accordance with the applicable provisions of the
Rent Stabilization Law and Code, it is
ORDERED, that this petition be and the same hereby is, denied;
and that the Administrator's order be, and the same hereby is,
JOSEPH A. D'AGOSTA