BB 130483-RT; BB 130484-RT
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 APPEAL
APPEALS OF : DOCKET NOS. BB 130483-RT
: BB 130484-RT
CLARA SCHONHERZ and :
LARAINE LEVENSON, : D.R.O. DOCKET NO.
: QCS 000892-OM
ORDER AND OPINION DENYING ADMINISTRATIVE APPEALS
On February 23, 1987 the above-named petitioner-tenants filed
Administrative Appeals against an order issued on January 28, 1987
by the District Rent Administrator, 92-31 Union Hall Street,
Jamaica, New York, concerning the housing accommodations known as
110-07 73rd Road, Forest Hills, New York, Apartments 3A and 3D.
The Commissioner deems it appropriate to consolidate the
administrative appeals for determination under this order and
opinion as they involve common issues of law and fact.
The Administrative Appeals are being determined pursuant to the
provisions of 9 NYCRR 2202.4 and 9 NYCRR 2522.4.
The issue herein is whether the District Rent Administrator
properly determined the owner's application for a rent increase
based upon the major capital improvement (MCI) of elevator
The Commissioner has reviewed all of the evidence in the record
and has carefully considered that portion of the record relevant
to the issue raised by the administrative appeals.
This proceeding was originally commenced by the owner's filing of
an application for a major capital improvement rent increase based
on elevator upgrading. The owner submitted proof that it spent
$10,930.00 for the upgrading and submitted the required approval
by the Department of Buildings for the elevator work.
In Order Number ZQCS 000892-OM, the District Rent Administrator
determined that the elevator upgrading constituted an MCI and
allowed appropriate rent increases for the rent-controlled and
rent-stabilized tenants based on the cost of the elevator
BB 130483-RT; BB 130484-RT
In their petitions, the tenants contend, in substance, that the
subject premises was converted to cooperative ownership on
November 7, 1983 and the owner herein, as owner of the unsold
shares, has no standing to seek a rent increase. In support of
such contention the tenants cite Grand Leasing Company v. New York
State Division of Housing and Community Renewal, 509 NYS 2d 768.
The tenants further allege that the work done was necessary repair
The Commissioner is of the opinion that these petitions should be
Firstly, the Commissioner notes that the two petitions herein,
which are identical to each other, are also identical to a third
petition which was assigned Administrative Review Docket No. BC-
130002-RT. On July 5, 1990, the Commissioner issued an order and
opinion denying the administrative appeal under Docket No. BC
130002-RT. The Commissioner's determination was based upon the
The elevator upgrading work consisted of the
installation of controllers and selectors. Such work
qualifies as an MCI pursuant to the relevant sections of
the Regulations (or Code), and is not regarded as
ordinary repair and maintenance work. With regard to
the case cited by the tenant, it was noted that Grand
Leasing Company, supra, disallowed an alternative
hardship rent increase for holders of unsold shares in a
cooperative which owned rent regulated apartments. Such
decision is not applicable to an MCI rent increase for
rent regulated apartments. Accordingly, the Rent
Administrator's order was warranted.
In view of foregoing final determination of an administrative
appeal which was identical to the two instant appeals, which
decision was not further appealed in Court, the Commissioner finds
that the instant appeals must similarly be denied.
THEREFORE, in accordance with the provisions of the Rent and
Eviction Regulations for New York City and the Rent Stabilization
Law and Code, it is
ORDERED, that these petitions be, and the same hereby are, denied,
and that the District Rent Administrator's order be, and the same
hereby is, affirmed.
JOSEPH A. D'AGOSTA
Acting Deputy Commissioner