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 ADMINISTRATIVE REVIEW
IN THE MATTER OF THE ADMINISTRATIVE DOCKET NO.: BI130174RT
APPEAL OF
MR. AND MRS. H. MARAK
RENT ADMINISTRATOR'S
DOCKET NO.: AB110076OM
PETITIONERS
-------------------------------------X
ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On September 9, 1987, the above named petitioner-tenants timely
filed a petition for administrative review (PAR) against an order
issued on August 14, 1987, by a Rent Administrator (Gertz Plaza)
concerning the housing accommodations known as 41-42 Elbertson
Street, Elmhurst, New York, Apt. 311, wherein the Rent
Administrator determined that the owner was entitled to a rent
increase based on the installation of major capital improvements
(MCIs).
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 February 16, 1986 by
initially filing an application for a rent increase based on the
installation of the following items at a total cost of $115,332.00:
thermal replacement windows, a new intercom, new elevator
controllers and new lobby entrance doors.
Various tenants objected to the owner's MCI application, alleging,
in substance, that the elevator does not stop level with the floor,
that the new lock does not work well and that the new intercom was
inferior to the old system. Additionally, the tenants contend that
the improvements constitute basic services and are the owner's
responsibility.
The owner answered the tenants' allegations stating that initial
problems with the lock were repaired and that minor elevator
repairs are covered in a service contract.
On August 14, 1987, the Rent Administrator issued the order here
under review finding that the installations qualified as MCIs,
determining that the application complied with the relevant laws
and regulations based upon the supporting documentation submitted
by the owner, and allowing rent increases for rent controlled and
rent stabilized tenants.
ADMIN. REVIEW DOCKET NO. BI-130174-RT
The order of the Rent Administrator granted, in part, the owner's
application and authorized an increase based on total approved
costs of $109,432.00. Disallowed by the Administrator was part
(5,900.00) of the claimed cost for elevator upgrading upon a
finding that the claimed cost was not properly substantiated.
In this petition, the tenants contend, in substance, that the
elevators are always out of order and that the lobby entrance door
locks are always broken.
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 record discloses that to the extent recognized by the
Administrator the owner substantiated its application to the
Administrator by submitting documentation in support of the
application including contractor's certification, copy of the
contracts, invoices, estimates and cancelled checks. On the other
hand, the tenants have not submitted on this appeal any evidence to
support their allegations.
Furthermore, the Rent Administrator denied two applications for
reductions in rent based upon building wide service complaints upon
an inspection on April 7, 1988 finding the elevators were
operational (Docket No. CA130017B) and upon an inspection on March
15, 1988 finding that front doors locks and elevators were
operating properly. (Docket No. BI130036B).
Subsequent to these two orders on April 27, 1993, the Commissioner
granted the owner's appeal, Docket No. FG130241RO, of a rent
reduction order, Docket No. DK130021B, concerning elevators
sporadically not stopping level with the floor. In the order for
Docket No. FG130241RO, the Commissioner noted that a search of the
Department of Buildings records revealed that there were no
violations against elevator operation issued while Docket No.
DK130021B was pending, which was prior to the June 28, 1991
issuance date.
The Commissioner is of the opinion that the tenants allegations are
devoid of evidentiary support and does not disturb the
Administrator's finding.
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ADMIN. REVIEW DOCKET NO. BI-130174-RT
This order and opinion is issued without prejudice to the tenants'
right to file an application for a rent decrease based on a
reduction in services, if the facts so warrant.
THEREFORE, in accordance with 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 affirmed.
ISSUED:
____________________
Joseph A. D'Agosta
Deputy Commissioner
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