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.: BJ410364RO
APPEAL OF
Bernard Gans
RENT ADMINISTRATOR'S
PETITIONER DOCKET NO: AE430033OM
------------------------------------X
ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On October 6, 1987 the above-named petitioner-owner filed an
administrative appeal against an order issued on September 4, 1987
by the Rent Administrator (92-31 Union Hall Street, Jamaica, New
York) concerning the housing accommodations known as 111 West 16th
Street, New York, New York, various apartments.
This proceeding was initially commenced on July 9, 1986 by the
owner filing an application for a major capital improvement (MCI)
rent increase based on the installation of a new roof and a new
boiler and burner at the premises at a total claimed cost of
$50,200.00. The owner submitted documentation in support of the
application, including copies of cancelled checks totaling
$46,650.00.
Subsequent thereto, the owner was requested to submit, among other
things, proof of payment of $3,550.00 in costs claimed for the
boiler and burner installation.
In response owner resubmitted copies of two checks that totaled
$3,500.00.
On September 4, 1987 the Rent Administrator issued an order
granting an MCI rent increase based on the installation of a new
roof and a new boiler and burner at the premises. The Administrator
disallowed as unsubstantiated claimed costs in the amount of
$3,550.00.
In this petition the owner contends that the total cost of the new
boiler and burner is $40,000.00 as indicated in the application
and submits copies of cancelled checks totalling $39,950.00 in
substantiation thereof.
Adm. Rev. Docket No. BJ410364RO
Various tenants submitted responses to the petition objecting, in
substance, to the rent increase.
The Commissioner is of the opinion 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 record reveals that the owner submitted a copy of a cancelled
check in the amount of $3,500.00 in substantiation of part of the
cost of the boiler and burner installation for the first time on
administrative appeal. The Commissioner notes that although the
owner responded to the Administrator's request for said proof of
payment, the evidence submitted consisted of copies of two checks
that were originally included with the owner's MCI application and
was therefore insufficient. The owner provides no explanation for
his failure to submit the requested documentation during the
proceeding below. Accordingly, the Commissioner finds that the
Administrator properly disallowed claimed costs in the amount of
$3,550.00 as unsubstantiated.
THEREFORE, in accordance with the Rent and Eviction Regulations and
the Rent Stabilization Law and Code, it is
ORDERED, that this petition be, and the same hereby is, denied, and
that the Rent Administrator's order be, and the same hereby is,
affirmed.
ISSUED:
JOSEPH D' A. ACOSTA
Deputy Commissioner
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