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
APPEALS OF DOCKET NOS.: BJ 230068-RT
VARIOUS TENANTS OF 15 HAWTHORNE : BJ 230069-RT
STREET, BROOKLYN, AND BJ 230070-RT
LOUIS MARKUS C/O NEIMAN COMPANY, BJ 230071-RT
OWNER PETITIONERS : BJ 230070-RO
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RENT ADMINISTRATOR'S
DOCKET NO.: AG 230133-OM
ORDER AND OPINION TERMINATING TENANTS' PETITIONS FOR ADMINISTRATIVE
REVIEW AND GRANTING OWNER'S PETITION FOR ADMINISTRATIVE REVIEW IN PART
The above-named petitioners timely filed Administrative Appeals against an
order issued on September 17, 1987 by the District Rent Administrator, 92-
31 Union Hall Street, Jamaica, New York concerning housing accommodations
known as 15 Hawthorne Street, Brooklyn, New York, various apartments,
wherein the Administrator granted in part the owner's application and
authorized a major capital improvement rent increase.
The Commissioner has reviewed all of the evidence in the record and has
carefully considered that portion of the record relevant to the issues
raised by the petitions for Administrative Review.
The owner commenced this proceeding by filing with the Division on July 21,
1986, a rent increase application for both rent controlled and rent
stabilized apartments in the subject premises, based on the installation of
an intercom system, entrance doors, painting of the fire escapes, new roof,
boiler/burner, and new thermal-break windows at a total cost of $23,344.67.
On September 17, 1987 the Rent Administrator issued the order here under
review granting the application in part, excluding the costs for the
windows and painting of fire escapes on the ground that such installations
did not constitute major capital improvements.
In their petitions for administrative review, the tenants fail to allege
any errors on which the Rent Administrator's order was based
In his petiton the owner herein contends, in substance, that the window
installation should be granted; that eighty-one of the 116 windows
installed were paid through the Weatherization Assistance Program; and that
the owner paid for 35 of the 116 windows however at a cost of $5,675.00.
With respect to the painting of the fire escapes, the owner admits that
this work does not qualify as an MCI as to rent-stabilized tenants, but
asserts that he was advised that such work would so qualify as to the two
rent-controlled tenants.
ADMIN. REVIEW DOCKET NO.: BJ 230068-RT et al.
After a careful consideration of the entire record, the Commissioner is of
the opinion that the tenants' petitions should be terminated, and that
portion of the owner's petition which pertains to the installation of
windows should be granted, and the Rent Administrator's order modified
accordingly.
With respect to the tenants' petitions, 9 NYCRR 2529.1 provides that a
petition for administrative review must allege the errors upon which the
Rent Administrator's order is based. As the tenants' petitions fail to
allege any such errors, no issues have been raised for determination and
the petitions should therefore be terminated.
With respect to the owner's allegation concerning painting of the fire
escape, the Commissioner finds that the Rent Administrator properly denied
that portion of the rent increase application because such work does not
constitute a major capital improvement. Such work is instead ordinary
repairs and maintenance of the subject building. In addition the owner has
failed to establish that the cost of painting the fire escapes in September
1984 ($390.00) represents 10% of the operating and maintenance expenses for
the building as required by Section 33.1e of the Rent Regulations (other
improvements performed in conjunction with a qualifying MCI) as implemented
by Rent Control Advisory Sheet 1-33.1e.
However, the record includes a copy of an agreement dated October 28, 1985
which confirms that Coalition Management Training Company paid for the
installation of 81 thermal break replacement windows and that the owner
paid for the remaining 35 replacement windows at a cost of $5,675.00.
Since the building-wide installation of windows to replace windows which
are 25 or more years old (as in the case herein) constitutes a major
capital improvement, the Commissioner is of the opinion and finds that the
owner is entitled to an additional rent increase to reflect the owner's
cost ($5,675.00) for the windows; and that the Administrator's order should
be modified based on a revised total approved cost of $22,869.10. This
results in a rent increase for rent controlled apartments of $4.82 (rather
than $3.63) per room, per month, effective as of October 1, 1987 (the first
rent payment date after issuance of the Administrator's order) and a rent
increase for stabilized apartments of $6.88% (rather than 5.18%), of the
rent in effect on the June 1986 rent roll date, effective November 1, 1986
collectible at the rate of 6% as of August 1, 1987 plus .88% as of August
1, 1988. (Said increase is computed in accordance with the methodology and
formula then in effect as set forth on page 3 of the Administrator's
order.)
The tenants may pay any arrears in rent arising as a result of this order
in 12 equal monthly installments.
THEREFORE, in accordance with the provisions of the Rent Stabilization Code
and the Rent and Eviction Regulations for New York City, it is
ADMIN. REVIEW DOCKET NO.: BJ 230068-RT et al.
ORDERED, that the tenants' petitions be, and the same hereby are
terminated; that the owner's petition be, and the same hereby is granted in
part; that the Administrator's order be, and the same hereby is modified
in the manner and to the extent indicated herein; and that as so modified
said order be, and the same hereby is affirmed.
ISSUED:
JOSEPH A. D'AGOSTA
Acting Deputy Commissioner
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