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.: BG430424RO
APPEAL OF
LABE TWERSKI ET. AL.
RENT ADMINISTRATOR'S
DOCKET NO.: ZLCS000681OM
PETITIONER
-------------------------------------X
ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW IN
PART
On June 30, 1987, the above named petitioner-owner timely refiled
a petition for administrative review (PAR) against an order issued
on April 3, 1987, by a Rent Administrator concerning the housing
accommodations known as 134 West 93rd Street, New York, NY, wherein
the Rent Administrator determined that the owner was entitled to a
rent increase based on the installation of a major capital
improvement (MCI).
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 this administrative appeal.
The owner commenced this proceeding on July 18, 1985, by initially
filing an application for a rent increase based on the installation
of an oil boiler/burner at a total cost of $45,995.00. The Rent
Administrator disallowed unsubstantiated expenditures in the amount
of $11,498.76 which resulted in a total approved cost of
$34,496.24.
In this petition, the owner has submitted an additional expenditure
in the amount of $9,199.00 which is substantiated by a copy of the
cancelled check paid to Marlande Heating Corp. The original copy
had been previously submitted on December 13, 1985, to the DHCR in
the proceeding below but did not receive consideration by the Rent
Administrator for reasons unknown.
Two tenants responded to the owner's petition raising no relevant
issues pertinent to the outcome of this PAR other than
considerations given to Senior Citizens (a tenant with a valid
Senior Citizen Rent Increase Exemption is not required to pay a
rent increase which is in excess of one third of the tenant's
income, as stated in the Administrator's order).
ADMIN. REVIEW DOCKET NO. BG-430424-RO
After considering that portion of the record relevant to the issues
raised by this petition, the Commissioner finds that the petition
should be granted in part.
Thus, the Commissioner recalculates the MCI rent increase herein as
follows:
For Rent Controlled Apartments (in NYC only) the legal
regulated rent is hereby increased by an additional .83
cents per room, per month, for a total of $3.92 per room,
per month, on the basis of the following calculation:
$43,695.24 (allowable cost) ö 60 ö 186 (number of rooms)
= $3.92 per room, per month, effective as of May 1, 1987.
For Rent Stabilized Apartments (in NYC only) the rent is
hereby increased by an additional .62% of 1 percent for
a total cost of 2.97% or $2.97 per each $100.00 of rent
paid, effective as of November 1, 1985, based on the
following calculation since the building contains both
rent stabilized and rent controlled apartments:
Allowable cost of MCI $43,695.24
Ratio of Rent Stabilized Apts.
(34) to total number of Apts.
in the building (53),
excluding the Superintendent's Apt. 64.15%
Apportioned cost of MCI
(Item 1 Multiplied by Item 2) $28, 030.50
Amortization of cost over
5 years (60 months)
(Item 3 ö 5) $ 5,606.10
Annual Gross Rent of Stabilized Apts.
including apportionment of Commercial
Rents if required (as of May 1985) $188,562.72
Percentage of Rent Increase
(Item 4 divided by Item 5) *2.97%
* The dollar amount may be determined by multiplying the
percentage (2.97%) by the amount of rent charged as submitted in
the rent roll dated May 1985.
ADMIN. REVIEW DOCKET NO. BG-430424-RO
The remaining $2,299.76 of expenditures claimed remains
unsubstantiated.
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, granted in
part; that the Rent Administrator's order be, and the same hereby
is, modified, so as to provide that the MCI increase be based upon
an approved cost of $43,695.24 which results in an additional
increase of $.83 per room, per month, for rent controlled
apartments effective as of May 1, 1987, and an additional increase
of .62% of 1 percent per each $100.00 of rent paid on the May 1985
rent roll date, for rent stabilized apartments effective as of
November 1, 1985, and that in all other respects said order of the
Rent Administrator be, and the same hereby is, affirmed.
The tenants may pay any arrears in rent arising as a result of this
order and opinion to cover the period between the effective dates
of the Administrator's order (November 1, 1985, for stabilized
apartments and May 1, 1987, for rent controlled apartments) and the
date of issuance of this order of the Commissioner, in twelve equal
monthly installments. Current tenants are not obligated to pay
arrears for the period prior to the date they took occupancy.
The Commissioner further notes that as to any apartment which first
became subject to Rent Stabilized jurisdiction after the April 3,
1987, issuance date of the Administrator's order, the additional
rent increase provided for herein is not collectible since the free
market rent charged the first rent stabilized tenant includes any
and all services then being provided.
ISSUED:
____________________
Joseph A. D'Agosta
Deputy Commissioner
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