STATE OF NEW YORK
DIVISION OF HOUSING AND COMMUNITY RENEWAL
OFFICE OF RENT ADMINISTRATION
92-31 UNION HALL STREET
JAMAICA, NEW YORK 11433
------------------------------------X ADMINISTRATIVE REVIEW
IN THE MATTER OF THE ADMINISTRATIVE DOCKET NO.: BH130050RT
Geraldine & Isidor Averbach,
PETITIONER DOCKET NO: QS000883OM
ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On August 7, 1987 the above named petitioner-tenant timely filed a
petition for administrative review against an order issued on July
13, 1987 by a Rent Administrator 92-31 Union Hall Street, Jamaica,
NY concerning the housing accommodations known as 178-10 Wexford
Terrace, Jamaica, NY apartment 7C wherein the rent administrator
determined that the owner was entitled to a rent increase based on
the installation of a Major Capital Improvement.
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 this administrative appeal.
The owner commenced this proceeding on July 14, 1986, by initially
filing an application for a rent increase based on the installation
of new aluminum thermal windows at a total cost of $193,380.00.
The tenant objected to the owner's application alleging in
substance that the owner should be responsible for the cost of
improvements, since it will receive tax benefits.
On July 13, 1987, the Rent Administrator issued the order here
under review finding, that the installation qualified as an MCI,
determining that the application complied with the relevant laws
and regulations based upon the supporting documentation submitted
by the owner, and allowing appropriate rent increases for rent
controlled and rent stabilized tenants.
In this petition, the tenant contends in substance that, he had
submitted an application for rent reduction and according to this
agency's administrative rulings, an MCI is uncollectible while a
rent reduction order is in effect.
Adm. Rev. Docket No. BH130050RT
In response to the tenant's petition the owner contends, in
substance, that the conditions complained of were addressed and the
owner had filed for restoration of the rent.
After careful consideration of the entire record, the Commissioner
is of the opinion that this petition should be denied.
Rent increases for major capital improvements are authorized by
Section 2522.4 of the rent stabilization code for rent stabilized
apartments. 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.
The evidence of record in the instant case indicates that
petitioner-tenant filed an individual service complaint with this
agency on January 1, 1987. A rent reduction order was granted on
September 2, 1987, approximately two months after the order
appealed herein had been issued.
The Commissioner finds that the Administrator acted properly in
granting the MCI as the rent reduction order was not in effect at
the time. However as provided in said rent reduction order the
increase provided for herein was not collectible for the period in
which the individual apartment's reduction was in affect.
THEREFORE, in accordance with the Rent Stabilization Law and Code,
ORDERED, that this petition be and the same hereby is, denied; and
that the administrator's be, and the same hereby is, affirmed.
JOSEPH A. D'AGOSTA