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.: BH 230115-RT
RALPH MONACO RENT ADMINISTRATOR'S
DOCKET NO.: KCS 000898-OM
ORDER AND OPINION REMANDING PROCEEDING ON APPEAL
On August 17, 1987, the above named petitioner-tenant timely filed a
petition for administrative review (PAR) against an order issued on July
17, 1987, by a Rent Administrator (Gertz Plaza) concerning the housing
accommodations known as 7040 Colonial Road, New York, various apartments,
wherein the Rent Administrator determined that the owner was entitled to a
rent increase based on the installation of a major capital improvement
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 October 15, 1985, by initially
filing an application for a rent increase based on the installation of the
following items at a cost of $62,000: New roof, construction of a retaining
wall, entrance door, and boiler/burner.
The tenants did not submit an objection to the owner's application although
afforded the opportunity to do so.
On July 17, 1987, the Rent Administrator issued the order herein under
review finding that the installation(s) qualified as an MCI, determining
that the application complied with the relevant laws and regulations base
upon the supporting documentation submitted by the owner, and allowing
appropriate rent increases for rent controlled and rent stabilized tenants.
The order of the Rent Administrator granted, in part, the owner's
application and authorized an increase for the new roof, entrance door and
boiler/burner upon a finding that the work completed complied with all
qualifying criteria established for a major capital improvement.
Disallowed by the Administrator was the claimed cost of $12,500 for the
construction of a retaining wall upon a finding that the installation did
not constitute a major capital improvement pursuant to the Rent
Stabilization Code and Regulations.
In this petition, the tenant contends in substance that the owner failed to
notify the tenants of the application requesting a rent increase.
Consequently, the tenants were not given the opportunity required by law,
ADMIN. REVIEW DOCKET NO.: BH 230115-RT
to review the application and comment thereupon. Furthermore, if given the
opportunity to review the application, the tenants would have advised that
the work completed was of poor and inferior quality.
A review of the record indicates that there was no response from the owner
to the tenant petition.
After careful consideration of the entire record, the Commissioner is of
the opinion that this proceeding must be remanded to the Rent Administrator
for further processing.
The issue of the tenant's alleged failure to receive notice of the MCI
application can be resolved by the Administrator ordering a hearing on the
basis of determining if the owner served proper notice to the tenants of
the MCI application.
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 is, granted to the extent of
remanding this proceeding to the Rent Administrator for further processing
in accordance with this order and opinion. The automatic stay of so much
of the Rent Administrator's order as directed a retroactive rent increase
is hereby continued until a new order is issued upon remand. However, the
Administrator's determination as to a prospective rent increase is not
stayed and shall remain in effect until the Administrator issues a new
Order upon remand.
JOSEPH A. D'AGOSTA
Acting Deputy Commissioner