DOC. NO.: BD 230553-RO
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. BD 230553-RO
SAM HAGE, : D.R.O. DOCKET NO.:
PETITIONER : ZKCS 000469-OM
ORDER AND OPINION REMANDING PROCEEDING
On April 8, 1987, the above named petitioner-owner timely refiled a
Petition for Administrative Review against an order issued on January
30, 1987, by the District Rent Administrator, 92-31 Union Hall
Street, Jamaica, New York, concerning housing accommodations known as
various apartments of 9217 - Third Avenue, Brooklyn, New York,
wherein the District Rent Administrator partially granted the owner's
application for a rent increase based upon the installations of major
capital improvements (MCI).
The issue in this appeal is whether the District Rent Administrator's
order was warranted.
The applicable sections of the law are Section 2522.4 of the Rent
Stabilization Code and Section 2202.4 of the New York City Rent and
The Commissioner has reviewed all the evidence in the record and has
carefully considered that portion of the record relevant to the
issue raised by the administrative appeal.
The owner commenced this proceeding on February 20, 1985 by filing an
application for a rent increase based on the installation of several
MCI's one of which being a new oil burner/boiler costing $8,500.00.
None of the tenants objected to the owner's MCI application.
In Docket Number ZCKS 000469-OM issued January 30, 1987, the District
Rent Administrator partially granted the owner's MCI's application,
but excluded $3,600.00 in costs for the oil burner/boiler
installation due to the owner's failure to substantiate adequately
with supporting documentation the total cost for the oil
In this petition, the owner contends in substance that the District
Rent Administrator's order is incorrect and should be modified to
include the $3,600.00 in costs which was excluded by the
None of the tenants submitted a response to the owner's petition.
DOC. NO.: BD 230553-RO
The Commissioner is of the opinion that this proceeding must be
remanded for further processing.
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
law 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 structure. Under rent stabilization, the improvement must
generally abe 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 the owner
substantiated the total cost of $8,500.00 for the new oil
burner/boiler installation by submitting to the Administrator copies
of the contract, a paid invoice, and three cancelled checks totalling
$8,500.00. Accordingly, the Commissioner finds that the
Administrator improperly excluded $3,600.00 from the cost of the
above-mentioned installation. Thus, this proceeding is remanded to
the District Rent Administrator for the purpose of recomputing the
amount and collection schedule of the MCI increase.
THEREFORE, in accordance with the Rent Stabilization Law and Code,
and the New York City Rent and Eviction Regulations, it is
ORDERED, that this petition be, and the same hereby is, granted to
the extent of remanding this proceeding to the District Rent
Administrator for further processing in accordance with this order
ADMINISTRATIVE REVIEW BUREAU
ARB Docket No.: BD 230553-RO
DRO Docket No/Order No.: ZKCS 000469-OM
Owner: Sam Huge
Code Section: RSC 2522.4
Premises: 9217-3rd Ave., various apts.,
Order and Opinion Remanding Proceeding on Appeal
Administrator improperly denied a portion of the cost of an MCI
due to the owner's failure to adequately substantiate the full
cost of the MCI. Record indicates that the owner did fully
substantiate the total cost of the installation with copies of
cancelled checks and paid invoice.
Proceeding remanded to recompute the amount and collection
schedule for the MCI increase.
Mailed copies of Order and Determination to:
Date: : by