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
------------------------------------X ADMINISTRATIVE REVIEW
IN THE MATTER OF THE ADMINISTRATIVE DOCKET NO.: BG210400RO
APPEAL OF
Eleanor Hartmann
RENT ADMINISTRATOR'S
PETITIONER DOCKET NO: ZKS000969OM
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ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On July 23, 1987, the above-named petitioner-owner timely filed a
petition for administrative (PAR) review of a Rent Administrator's
order issued on June 18, 1987, bearing the above-referenced docket
number which denied, in part, the owner's application to increase
the rents based upon a claim that major capital improvements (MCIs)
were made to the building.
In the application, concerning the premises located at 48th Street
Nicholas Avenue, Brooklyn, New York, the owner initially requested
a rent increase based upon the installation of the following items
at a total cost of $11,758.00.
(a) pointing and waterproofing;
(b) new concrete (basement and sidewalk);
(c) exterior and interior painting;
(d) new carpeting (hallway and stairs); and
(e) new roof.
The Rent Administrator disallowed each claimed MCI except for the
new roof which resulted in an approved cost of $1500.00.
In this petition, the owner contends, in substance, that, due to
some clerical error, there has been a misunderstanding as to what
improvements were actually made to the premises; that the building
was painted and waterproofed on exposed sides of the building
(contractor statement and diagram submitted); that the concrete
Adm. Rev. Docket No. BG210400RO
resurfacing was performed on the entire original area within the
property lines of the premises; and that she believes that she
should be entitled to receive an MCI rent increase for the above
improvements.
One tenant responded to the owner's PAR requesting that the
application be approved.
After considering that portion of the record relevant to the issues
raised by this petition, the Commissioner finds that this petition
should be denied.
Rent increases for major capital improvements are authorized by
Section 2202.4 of the Rent and Eviction Regulations for rent
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 evidence of record in the instant case indicates that the Rent
Administrator acted properly in denying the aforementioned items
for the following reasons:
(a) exterior and interior painting as well as new carpeting are
non-structural repairs considered to be cosmetic in nature
thereby constituting normal repairs and/or maintenance;
(b) replacement of the sidewalk, as stated in the contract, which
is outside the property lines, is considered to be a non-
depreciable expense as distinguished from the depreciable
expense of replacing all interior courtyards and walkways
which lie within the limits of the supporting lines thereby
constituting an MCI;
(c) the new concrete of the basement floor must have entirely
replaced the old floor. No breakdown has been submitted which
would allow the Commissioner to determine whether or not the
job was complete or piece-meal in nature; and
(d) the pointing and waterproofing contract discloses that no
pointing was done. Waterproofing in and of itself is not an
MCI. Under such circumstance, the replacement of lintels/angle
irons including the necessary brick work must be performed on
a building-wide basis in order to qualify as an MCI.
Adm. Rev. Docket No. BG210400RO
THEREFORE, in accordance with the Rent Stabilization Law and code,
and the New York City Rent and Eviction Regulations, it is
ORDERED, that this petition be, and the same hereby is, denied and
that the Administrator's order be, and the same hereby is,
affirmed.
ISSUED:
JOSEPH A. D'AGOSTA
Deputy Commissioner
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