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
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IN THE MATTER OF THE ADMINISTRATIVE : ADMINISTRATIVE REVIEW
APPEAL OF DOCKET NO.: BA 230073-RO
:
DISTRICT RENT ADMINISTRATOR'S
HINDY ASSOCIATES DOCKET NO.: CS 000996-OM
PETITIONER :
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ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On January 27, 1987, the above-named owner filed a petition for
administrative review of an order issued on December 26, 1986 by a
District Rent Administrator concerning the housing accommodations known as
200 Gelston Avenue, Brooklyn, New York, Various Apartments.
The Commissioner has reviewed all the evidence in the record and has
carefully considered that portion of the record relevant to the issues
raised by the petition for administrative review.
The District Rent Administrator's order appealed herein increased the
rents of all Rent Stabilized apartments by $4.64 per each $100.00 of rent
paid per month, and Rent Controlled apartments by $4.20 per room, per
month, based upon the purchase and installation of a new oil
burner/boiler, entrance door and intercom system at a substantiated
allowable cost of $16,633.34. The effective date of the rent increase was
determined to be June 1, 1986 for Rent Stabilized apartments and from the
first rent payment day following the issuance of the order (December 26,
1986) for rent controlled apartments. It was noted that the cost of the
purchase and installation of a heat timer was disallowed. It was further
noted that the cost for the new mailboxes was disallowed as they were
installed in the same location as the prior boxes.
On appeal, the owner alleges, in substance, that the costs for the
purchase and installation of mailboxes and a heat timer were improperly
disallowed. The owner asserts that the mailboxes were installed in a new
location in a locked area and that the heat timer is an integral part of
the boiler/burner installation. The owner thereby asserts that these
installations conform to agency standards for MCI rent increases.
After careful consideration of the entire evidence of record, the
Commissioner is of the opinion that the administrative appeal should be
denied.
The Commissioner notes at the outset that rent increases for major
capital improvements are authorized by Section 2202.4 of the Rent and
Eviction Regulations for rent controlled apartments and Section 2522.4 of
the Rent Stabilization Code for rent stabilized units. Under rent
control, an increase is warranted where there has been since July 1, 1970
DOCKET NUMBER BA 230073-RO
a major capital improvement required for the operation, preservation, or
maintenance of the structure. Under Rent Stabilization the improvement
must generally be building-wide; depreciable under the Internal Revenue
Code, other than for ordinary repairs; required for the operation,
preservation, and maintenance of the structure; and replace an item whose
useful life has expired. Piecemeal work or ordinary repairs and
maintenance does not constitute work for which a rent increase adjustment
is warranted under current and past procedure.
The record reveals that the administrator properly applied these
principles to the owner's application. The installations for which
increases were allowed fit the above definition and their costs were
substantiated by the owner. The Administrator properly found that the
installation of the mailboxes and the heat timer did not qualify as
major capital improvements.
With respect to the mailboxes it is the established position of the
Division that the installation of mailboxes per se does not constitute a
major capital improvement but rather their structural relocation to a more
secure area behind locked doors. The record discloses that evidence
submitted when this proceeding was before the Administrator does not
indicate the relocation of the mailboxes to a more secure area behind
locked doors and the owner does not submit any new evidence within his
petition which would allow the Commissioner to reexamine this issue in the
context of this appeal.
With respect to the heat timer, the District Rent Administrator properly
determined that such item does not constitute a major capital improvement
in accordance with agency policy and precedent.
THEREFORE, in accordance with the provisions of the Rent and Eviction
Regulations and the Rent Stabilization Law and Code, it is
ORDERED, that this administrative appeal be, and the same hereby is,
denied, and that the order of the District Rent Administrator be, and the
same hereby is, affirmed.
ISSUED:
JOSEPH A. D'AGOSTA
Deputy Commissioner
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