OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

          -------------------------------------X   ADMINISTRATIVE REVIEW
          APPEALS OF                               BI230388RT
                    DIANE PERRY AND
                    DAVID SCHACHTER                RENT ADMINISTRATOR'S
                                                   DOCKET NO.:  AG230137OM


          The above-named petitioners timely filed petitions for 
          administrative review (PARs) against an order issued on August 20, 
          1987, by the Rent Administrator (Gertz Plaza) concerning the 
          housing accommodations known as 317 Pacific Street apartment Nos. 
          B4 and D2, Brooklyn, New York, wherein the Rent Administrator    
          granted the owner's application for a major capital improvement 
          (MCI) rent increase based on the installation of new replacement 
          windows building-wide.

          The Commissioner has reviewed all of the evidence of record and has 
          carefully considered that portion relevant to the issues raised by 
          these administrative appeals.

          On appeal, the tenant of apartment No. B4 (Docket No. BI230388RT) 
          contends, in substance, that the work benefits the owner due to the 
          increased value of the property; that the owner did not refute her 
          statement contending that the life expectancy of the old windows 
          had not expired.  The tenant of apartment No. D2 (Docket No. 
          BI210231RT) asserts, in substance, that he took occupancy after the 
          owner filed its application; and that his vacancy lease does not 
          contain any provision which would authorize a rent increase 
          adjustment prior to the expiration of the lease term.  Submitted 
          with the petition is a copy of said vacancy lease.

          In response to the tenants' petitions the owner submitted an answer 
          stating, in substance, that the old windows had been over 50 years 
          old and they were beyond repair.

          After careful consideration of the entire evidence of record, the 
          Commissioner is of the opinion that the administrative appeal under 
          Docket No. BI230388RT should be denied; and that the administrative 
          appeal under Docket No. BI210231RT should be granted, in part, and 
          the Administrator's order modified in accordance with this order 
          and opinion.

          ADMIN. REVIEW DOCKET NOS. BI-210231-RT, BI-230388-RT

          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 apartments.  Under rent control, an 
          increase is warranted where there has been since July 1, 1970, 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 
          with a rent increase adjustment is warranted under current and past 

          It is the established position of the Division that the 
          installation of new replacement windows to replace windows which 
          are twenty-five years old or older constitutes a major capital 
          improvement for which a rent increase adjustment may be warranted.  
          The record in the proceeding below discloses that the owner 
          substantiated its application by submitting to the Administrator, 
          among various documentation, a statement certifying that the old 
          windows were 50 years old.  The Commissioner is of the opinion that 
          the tenant's (Apt. B4) allegation with respect to the life 
          expectancy of the old windows, devoid of evidentiary support, 
          should not disturb the Administrator's finding.

          As to the tenant's assertion (Apt. D2), that his vacancy lease does 
          not contain any provision which would authorize collection of the 
          MCI rent increase prior to the expiration thereof, the Commissioner 
          notes that for the MCI rent increase granted by the Administrator's 
          order to be collectible during the term of the petitioner's vacancy 
          lease, such vacancy lease would have to contain a specific clause 
          advising the tenant of the docket number of the pending proceeding 
          and advising that the rent charged was subject to additional 
          increase (during the current lease term in effect) as provided by 
          Section 2522.4(a)(5) of the Rent Stabilization Code and established 
          Division precedent.  In the absence of same, said increase was not 
          collectible until the expiration of the lease term then in effect 
          at the time of issuance of the MCI order, provided the renewal 
          lease contains a general authorization provision for adjustment of 
          the rent reserved by the DHCR order.  The record, as amplified on 
          appeal, discloses that the tenant executed his vacancy lease on 
          January 1, 1987, after the owner completed service of its 
          application upon the tenants on September 2, 1986.  Also, said 
          vacancy lease did not contain any specific clause advising the 
          tenant of the pending MCI application.  


          ADMIN. REVIEW DOCKET NOS. BI-210231-RT, BI-230388-RT

          Accordingly, the Commissioner finds that the tenant of apartment D2 
          is exempt from the rent increase provided for in the 
          Administrator's order until the expiration of the initial lease, 
          December 31, 1987.

          THEREFORE, in accordance with the applicable provisions of the Rent 
          Stabilization Law and Code and the Rent and Eviction Regulations, 
          it is

          ORDERED, that the petition for administrative review under Docket 
          No. BI230388RT be, and the same hereby is denied; that the petition 
          for administrative review under Docket No. BI210231RT be, and the 
          same hereby is granted in part; that the Administrator's order be, 
          and the same hereby is modified by exempting apartment D2 from the 
          rent increase until the expiration date, December 31, 1987, of the 
          initial lease; and that as so modified said Administrator's order 
          be, and the same hereby is affirmed, and it is further

          ORDERED,  that the owner refund to the tenant of apartment D2 
          (David Schachter) any excess rent which may have been collected, 
          arising as a result of this order, within 30 days from the date of 
          issuance hereof.


                                                         Joseph A. D'Agosta
                                                        Deputy Commissioner



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