BI 430284 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. BI 430284 RO
: DRO DOCKET NO.ZAK 430017-OM
301 EAST 50 COMPANY
ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On September 25, 1987, the above-named petitioner-owner filed
a Petition for Administrative Review against an order issued on
September 17, 1987, by a Rent Administrator concerning the housing
accommodations known as 301 East 50th Street, New York, New York,
Various Apartments, wherein the Rent Administrator determined that
the owner was not entitled to a rent increase based upon a major
capital improvement (hereafter MCI).
The Administrative Appeal is being determined pursuant to the
provisions of Section 2202.4 of the Rent and Eviction Regulations
and Section 2522.4 of the Rent Stabilization Code.
The issue herein is whether the Rent Administrator's order
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 appeal.
The owner commenced this proceeding in November, 1986, by
filing an application for a rent increase based on the
installation of a reconditioned burner at a cost of $4,400.00.
In Order Number ZAK 430017-OM, the Rent Administrator
determined that the installation of a reconditioned burner did not
qualify as an MCI.
In this petition, the owner contends in substance that the
installation of a reconditioned burner should qualify as an MCI
because it was not the reconditioning of the previous burner in
the subject premises, but was the installation of a different
burner with newly reconditioned parts.
The Commissioner is of the opinion that this petition should
Rent increases for major capital improvements are authorized
by Section 2202.4 of the Rent and Eviction Regulations for rent
BI 430284 RO
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.
The Commissioner is of the opinion that only the installation
of a completely new burner would qualify as an MCI. The
installation of a reconditioned burner is considered ordinary
maintenance and repair work for which no rent increase is
THEREFORE, in accordance with the provisions of the Rent
Stabilization Law and Code, and the Rent and Eviction Regulations
for New York City, it is
ORDERED, that this petition for administrative review be, and
the same hereby is, denied, and, that the order of the Rent
Administrator be, and the same hereby is, affirmed.
BI 430284 RO