DIVISION OF HOUSING AND COMMUNITY RENEWAL
OFFICE OF RENT ADMINISTRATION
92-31 UNION HALL STREET
JAMAICA, NEW YORK 11433
------------------------------------X ADMINISTRATIVE REVIEW
IN THE MATTER OF THE ADMINISTRATIVE DOCKET NO.: CB630077RT;
APPEAL OF CC610121RT; CC630322RT
HAROLD URETSKY AND HYMAN KNAUER,
PETITIONERS DOCKET NO.: AL630011OM
ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On various dates the above-named petitioner-tenants filed petitions
for administrative review (PARs) of an order issued on February 5,
1988, by the Rent Administrator, concerning the housing
accommodations known as 2146-48 Barnes Avenue, Bronx, NY,
Apartments 604 and 215, wherein the Administrator granted, in part,
the owner's application for a rent increase which was based on the
installation of various major capital improvements (MCIs).
The Commissioner deems it appropriate to consolidate these
petitions for disposition since they pertain to the same order and
involve common issues of law and fact.
In addition, Docket No. CB630077RT and Docket No. CC630322RT are
essentially the same petition, as duplicate copies of the tenant's
petition were erroneously assigned two docket numbers.
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 these administrative appeals.
The owner commenced the instant proceeding by initially filing an
application for a rent increase predicated on the installation of
a burner/boiler, entrance doors, mailboxes and an elevator upgrade
at a total claimed cost of $49,716.00.
In response to the owner's application, numerous tenants, including
the petitioners, raised objections to the various installations.
However, the only objections raised below by the petitioners
regarding the burner/boiler was that it had been installed in 1982
by a previous owner.
In Docket No. AL630011OM, issued February 5, 1988, the Rent
Administrator partially approved the owner's MCI application by
ADMIN. REVIEW DOCKET NO. CB630077RT
authorizing a rent increase of $2.40 per room, per month, for all
rent controlled and rent stabilized apartments in the subject
building predicated on the installation of a burner/boiler, which
work was found to qualify as an MCI.
In the petitions for administrative review, the petitioners
contend, in substance, that the burner/boiler was installed by a
previous owner and that the boiler/burner is defective and provides
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 to
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,
cancelled checks and requisite governmental approvals.
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. Who owned the building
while the work was performed is insignificant.
The Commissioner noted that the petitioners herein raised no
objections as to the quality or adequacy of the installations while
this proceeding was before the Rent Administrator, although they
were afforded the opportunity to do so.
Accordingly, pursuant to prior administrative decisions under the
Rent and Eviction Regulations and pursuant to Section 2529.6 of the
Rent Stabilization Code, the tenants' allegations may not be
considered now when offered for the first time on administrative
appeal. The Commissioner further notes that the records of the
Division disclose that no heat or hot water complaints were
pending nor were there any orders of rent reduction of a building-
wide nature in effect as of the issuance date of the
Administrator's order appealed herein.
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
ADMIN. REVIEW DOCKET NO. CB630077RT
ORDERED, that these petitions be and the same hereby is, denied;
and that the order of the Rent Administrator be, and hereby is,
LULA M. ANDERSON