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.:BG 110269-RT
CHARLES DEMPSEY DOCKET NO.: QS 000695-OM
ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On July 29, 1987, the above-named tenant filed a petition for
administrative review of an order issued on June 26, 1987 by a District
Rent Administrator concerning the housing accommodations known as 144-44
41st Avenue, Flushing, New York, Apartment 6N.
The administrator granted the owner's application based on the
installation of adequate wiring, air conditioner outlets and an intercom
The Commissioner has reviewed all the evidence in the record and has
carefully considered that portion of the record relevant to the issues
raised by the petition for review.
On appeal, the tenant asserts, in pertinent part, that the permanent and
retroactive major capital improvement (MCI) rent increases when taken
together, exceed the amount requested by the owner in his application.
The tenant also confirms the owner's claim of the improved wiring and
additional electrical outlet installation, and asserts various services
complaints unrelated to the MCI's.
After careful consideration of the entire evidence of record, the
Commissioner is of the opinion that the administrative appeal should be
Rent increases for major capital improvements are authorized by Section
2522.4 of the Rent Stabilization Code for rent stabilized apartments.
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 owner is permitted a permanent prospective six percent maximum
increase and an additional six percent maximum increase for the temporary
retroactive portion of the MCI rent adjustment (Supplement No. 1 to
Operational Bulletin 84-4).
The record reveals that the administrator properly applied these
principles to the owner's application. The installations for which
increases were allowed fit the above definition and their costs were
DOCKET NUMBER: BG 110269-RT
substantiated by the owner. The Administrator properly found that the
rewiring, electrical outlets and intercom system qualified as MCI
installations and appropriate rent increases were granted which did not
exceed the lawful limits.
This order and opinion is issued without prejudice to the right of the
tenant to file a services reduction complaint if the facts so warrant.
THEREFORE, in accordance with the Rent Stabilization Law and Code, it is
ORDERED, that this Administrative appeal be, and the same hereby is,
denied, and that the order of the District Rent Administrator be, and the
same hereby is, affirmed.
JOSEPH A. D'AGOSTA
Acting Deputy Commissioner