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.: BH130214RO
APPEAL OF
KEW-JAC ASSOCIATES, RENT ADMINISTRATOR'S
C/O REHAB ASSOCIATES, DOCKET NO.: AB130041OM
PETITIONER
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ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
The above-named petitioner-owner timely filed an administrative
appeal against an order issued on August 24, 1987, by the Rent
Administrator (92-31 Union Hall Street, Jamaica, New York)
concerning the housing accommodations known as 119-37 Metropolitan
Avenue, Kew Gardens, New York, various apartments, wherein the Rent
Administrator partially granted the owner's application for a major
capital improvement (MCI) rent increase based on the installation
of a new burner and boiler, a new vestibule door, a new roof and
elevator upgrading at a total approved cost of $78,700.00. The
Administrator disallowed expenditures for pointing and
waterproofing at the premises based on a determination that said
work, performed where necessary, did not constitute a majfor
capital improvement.
In this petition, the owner contends, in substance, that pointing
and waterproofing expenditures should not have been disallowed.
Several tenants submitted responses to the owner's petition in
which they object to an additional MCI rent increase for pointing
and waterproofing and raise service complaints both related and
unrelated to the previously approved MCI installations. None of
the tenants raised objections to the quality or adequacy of the
pointing and waterproofing work.
The Commissioner is of the opinion that this petition should be
granted.
ADMIN. REVIEW DOCKET NO. BH-130214-RO
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.
It is Division policy to consider comprehensive pointing and
waterproofing on exposed sides of a building, as qualifying for
treatment as a major capital improvement. The work performed, for
example, must be greater than mere spot patching to repair current
leaks or trouble spots so as to be in the nature of an improvement
or betterment of the structure. (Accord: SJR4597, DB430282RT).
A review of the record in the instant proceeding reveals that the
owner submitted copies of the following documentation in support of
its application for an MCI rent increase for the pointing and
waterproofing work performed at the subject premises: an invoice;
cancelled checks; a statement from the contractor advising that all
exposed surfaces of the building were examined prior to the work
and then all work necessary was perfomred; and a diagram indicating
the areas of the building where the work was performed.
Although several tenants raised questions below as to whether
pointing and waterproofing was actually performed, only one tenant
raised a complaint regarding "water leakage". The Commissioner
further notes that no such complaints were raised on administrative
appeal. Accordingly, the Commissioner is of the opinion and finds
that the pointing and waterproofing work herein qualifies as a
major capital improvement. The Commissioner further finds that the
owner is entitled to an additional rent increase to reflect the
owner's cost ($27,430.00) for the pointing and waterproofing and
that the Administrator's order should be modified based on a
revised total approved cost of $106,134.00. This results in a rent
increase for rent controlled apartments of $8.08 (rather than
$5.99) per room, per month, effective as of September 1, 1987 (the
first rent payment date after issuance of the Administrator's
order) and a rent increase for stabilized apartments of 5.75%
(rather than 4.26%) of the rent in effect on the February, 1986
rent roll date, effective June 1, 1986. (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 arrears in rent arising as a result of this
order in 12 equal monthly installments.
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ADMIN. REVIEW DOCKET NO. BH-130214-RO
THEREFORE, in accordance with the Rent and Eviction Regulations of
New York City and the Rent Stabilization Law and Code, it is
ORDERED, that this petition be, and the same hereby is, granted;
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
Deputy Commissioner
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