DHCR Decisions
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.: CB210192RT
APPEAL OF
VALENTINE DOUGLAS,
RENT ADMINISTRATOR'S
PETITIONER DOCKET NO.: AF210158OM
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ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On February 19, 1988, the above-named petitioner-tenant timely re-
filed a petition for administrative review (PAR) of an order issued
on October 30, 1987, by the Rent Administrator, concerning the
housing accommodation known as 56 Rockaway Parkway, Brooklyn, New
York, Apartment 14B, wherein the Administrator granted a former
owner's application for a rent increase which was based on the
installation of a major capital improvement (MCI), new windows.
The Commissioner has reviewed all of the evidence in the record and
has carefully considered that portion of the record relevant to the
issue raised by the administrative appeal.
The former owner commenced the instant proceeding by initially
filing an application for a rent increase predicated on the
installation of windows at a total cost of $37,355.00.
In Docket No. AF210158OM, issued October 30, 1987, the Rent
Administrator issued the order here under review, approving the
owner's MCI application by authorizing a rent increase of $5.56 per
room, per month for all rent controlled and rent stabilized
apartments in the subject building.
While the application was being processed, the building was sold to
Jean M. Deliv.
In this petition, the tenant contends, in substance, that the
building changed ownership and that any capital improvement in that
year would be part of the consideration for the fair value received
by the previous owner.
In response to the petition, the owner contends that the change of
ownership was lawful and notification was sent to the tenants and
the DHCR, and the owner took over the building in its entirety.
ADMIN. REVIEW DOCKET NO. CB210192RT
After a careful consideration of the entire record the Commissioner
is of the opinion that this petition should be denied.
Rent increases for major capital improvements are authorized by
Section 2522.4 of the Rent Stabilization Code and are warranted
where the improvements are building-wide, depreciable under the
Internal Revenue Code, other than for ordinary repair, required for
the operation, preservation and maintenance of the structure and
replace an item whose useful life has expired.
The record in the instant case indicates that the Administrator's
order was predicated upon a review of full supporting documentation
including contracts, contractor's certification and cancelled
checks.
A change in the ownership of the building does not affect the
validity of the order granting the rent increase. It is the actual
work performed that merits the increase. The fact that there was a
subsequent change in ownership is insignificant.
Based on the entire evidence of record , the Commissioner finds
that the Administrator's order is correct and should be affirmed.
THEREFORE, in accordance with the applicable provisions of the Rent
Stabilization Code, it is
ORDERED, that this petition be, and the same hereby is, denied; and
that the order of the Rent Administrator be, and hereby is,
affirmed.
ISSUED:
LULA M. ANDERSON
Deputy Commissioner
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