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.: ARL 11168-L
DRO DOCKET NO.: LCS 000652-OM
ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On May 9, 1986, the above named petitioner-owner filed a Petition for
Administrative Review (PAR) of an order issued on May 5, 1986 by the
District Rent Administrator at Gertz Plaza, Jamaica, New York concerning
the housing accommodation known as 18 Mott Street, New York, New York
wherein the Administrator determined the owner's major capital improvement
rent increase application.
On June 6, 1987 the Commissioner rejected the owner's PAR for procedural
reasons without prejudice to the applicant to refile properly within
On January 24, 1990, the Commissioner issued an order dismissing the
owner's PAR on the grounds that it had not been refiled timely. However,
in March 26, 1990, the Commissioner reopened the PAR proceedings for
further processing upon a showing by the owner that the refiled PAR was
The issue in this appeal is whether the Administrator's determination was
The applicable Law is Section 2202.4 of the Rent and Eviction Regulations
and Section 2522.4 of the Rent Stabilization Code.
The District Rent Administrator's order appealed herein, in pertinent part
denied major capital improvements rent increases for the following
Gas burner boiler heat timer $ 1,200.00
Repairs of gas boiler $ 570.00
Iron window Guards & Railings in the
windows of basement public hall $ 1,720.00
In the petition the owner suggests that the installation of the heat timer
and repairs of the gas boiler constituted part of the installation of the
new gas boiler in 1979 at a total cost of $12,070.00. The petitioner also
asserts out that these items are included in the "J-51" program schedule
as major capital improvements.
DOCKET NUMBER: ARL 11168-L
Under rent regulations, for work to qualify as major capital improvements
entitling an owner to rent increases, the work performed must, among other
things, be an improvement to the building which directly or indirectly
inures to the benefit of all tenants and which includes the same work
performed on all similar components of the building unless the owner can
satisfactorily demonstrate to the DHCR that certain of such similar
components did not require the improvement.
However, applying the principles detailed above and, based on the facts
asserted in the owner's PAR, the Commissioner finds that the owner did not
establish that the installation of iron windows guards and railings in the
basement inured to the benefit of all tenants. Furthermore, the owner did
not demonstrate to the Administrator that such installation included the
same work performed in all similar components of the building or that
such similar components did not require improvement.
In addition, the costs of the heat timer were properly disallowed in
accordance with the Division's standard policy not to treat such items as
major capital improvements but optional adjuncts to a heating system
inuring only to the owner's benefit.
Thus, the installations in question have not been shown to qualify as
major capital improvements.
Lastly, the Commissioner notes that the capital improvement provisions of
the New York City "J-51" tax abatement program, do not have any pertinence
to the provisions of the Rent and Eviction Regulations and the Rent
Stabilization Code for the purpose of computing MCI rent increases.
Concerning the cost for boiler repairs, the Commissioner notes that costs
incurred to restore equipment to operating condition do not normally
qualify for MCI rent increases notwithstanding that there may have been
incurred coincidentally with the installation of new equipment.
THEREFORE, in accordance with the Emergency Tenant Protect Act of 1974,
and Chapter 403 of the Laws of 1983, as amended by Chapter 102 of the Laws
of 1984, it is
ORDERED, that this petition be and the same hereby is, denied, and that
the District Rent Administrator's order be and the same hereby is