DOCKET NO.: BE 430370 RO
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.: BE 430370 RO
Bak Ho Hum DISTRICT RENT
ADMINISTRATOR'S DOCKET
NO.: LCS000506 OM
PETITIONER
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ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On May 12, 1987 the above-named petitioner-owner timely refiled a
petition for administrative review against an order issued February
18, 1987 by a Rent Administrator concerning the housing
accommodations known as 108 Madison Street, New York, New York
wherein the Administrator denied the owner's application for a rent
increase based on a finding that the claimed installation was not
properly documented.
The Commissioner has reviewed all of the evidence in the record an
has carefully considered that portion of the record relevant to the
issue raised by the administrative appeal.
The owner commenced this proceeding on March 25, 1985 by filing an
application for a rent increase based on a major capital
improvement, to wit, the installation of a new boiler in May 1984
at a cost of $15,500.
The owner certified that all tenants were served with a copy of the
application and placed a copy of the tenant Review package in the
superintendent's office. No tenants responded.
On May 28, 1985, the Administrator asked the owner to submit an
affidavit that the gas boiler was paid in full in cash. Various
necessary government approvals were also requested.
The owner responded on August 13, 1986 stating that the approval
forms would be submitted as soon as the plumber who installed the
boiler could submit them.
No further submissions were received and the owner's application
was denied.
DOCKET NO.: BE 430370 RO
In the petition for administrative review, the owner seeks
reversal of the Administrator's order and resubmits the same
documents that had been submitted to the Administrator.
Six tenants responded to the petition and complained that services
in the building are worse than ever.
After careful consideration of the evidence of record, the
Commissioner is of the opinion that the petition should be denied.
The owner has failed to substantiate proof of payment of the
$15,500 for the boiler. Division policy, as stated in Policy
Statement 90-10 provides that a claimed MCI cost must be supported
by adequate documentation which may consist of any one of the
following:
(1) Cancelled check(s) contemporaneous with the
completion of the work.
(2) Invoice receipt marked paid in full contemporaneous
with the completion of the work
(3) Signed contract agreement
(4) Contractor's affidavit indicating that the
installation was completed and paid in full.
The policy statement further provides that additional documentation
may be required if a claimed cost warrants further inquiry.
The owner herein has not submitted any of the aforementioned
documents despite repeated requests and ample time and opportunity
to do so. The owner claims that payment was made in cash so that
cancelled checks do not exist. An invoice stamped "paid" by the
contractor on June 4, 1985 is not contemporaneous with an
installation made more than a year earlier in May 1984. The signed
contract does not establish the dates and amounts of actual
payments. The owner was requested to submit an affidavit by the
contractor that the installation was paid in full but failed to
comply. In the absence of such an affidavit, the owner has not
adequately documented the claimed cost and the application was
properly denied.
DOCKET NO.: BE 430370 RO
THEREFORE, in accordance with the Rent Stabilization Law and Code
and the Rent and Eviction Regulations for New York City, it is
ORDERED, that this petition be and the same hereby is denied and
the Administrator's order be and the same hereby is affirmed.
ISSUED:
JOSEPH A. D'AGOSTA
Deputy Commissioner
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