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
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IN THE MATTER OF THE ADMINISTRATIVE DOCKET NO.: CC630435RO
APPEAL OF
ALCAP ASSETS INC.,
C/O ED TRISTRAM ASSOCIATES
RENT ADMINISTRATOR'S
PETITIONER DOCKET NO: AG630099OM
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ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW IN
PART
The above named petitioner-owner timely filed on March 29, 1988 a
petition for administrative review (PAR) against an order issued on
March 3, 1988 by the Rent Administrator (Gertz plaza) concerning
the housing accommodations known as 2690 University Avenue, Bronx,
New York, various apartments, wherein the Administrator denied the
owner's application for major capital improvement (MCI) rent
increases for controlled and stabilized apartments at the subject
dwelling.
The owner commenced this proceeding on August 8, 1986 by initially
filing an application for an MCI rent increase predicated on the
installation of a new boiler/burner at a total cost of $43,000.00.
Said application was denied by the Administrator on grounds that
requisite permits and approvals for the installation had not been
submitted.
In this petition for administrative review, the owner request
reversal of the Administrator's order and contends, in substance
that the owner did the work as described in the MCI application;
that the tenants have the benefit of same; that the owner made
timely application for the increase and did all within its power to
respond to all Division requests; that the Certificate of
Electrical Inspection from the New York City Department of
Buildings, Bureau of Electrical Control, was not issued until
February 25, 1988; and that this final approval document is now
being supplied. Submitted with the petition, are copies of the
Certificate of Approval for Oil Burning Installation issued on
January 23, 1987 (previously submitted) and the Certificate of
Electrical Inspection Issued on February 25, 1988.
In response to the owner's petition, three tenants filed answers
contending, in substance, that the proceeding should be terminated
since the owner did not provide necessary permits and approvals
(Apt 2L); that the proper maintenance of the old boiler would have
ADMINIS. REVIEW DOCKET NO.: CC630435RO
preclude the necessity of a new boiler; and that the owner's letter
of October 28, 1985 stated that it would derive tax benefits under
the J-51 program without the need of rent increase (Apt 3A); and
that there are various repairs that need to be done in the
apartment (Apt 3E).
After a careful consideration of the entire evidence of record, the
Commissioner is of the opinion that this petition should be
granted, in part.
With respect to the contentions of the tenant in Apt 3A, the record
discloses that the owner certified in its MCI application that the
old boiler was approximately 50 years old; that the tenant does not
refute that the old boiler exhausted its useful life; and that the
owner was granted a tax abatement from the J-51 tax incentive
program for the improvement. However only the rent controlled
tenants are entitled to any tax abatement offset since the
installation commenced subsequent to June 28, 1988.
As to the allegations of the tenant in apt 3E regarding lack of
repairs, the Commissioner notes that such allegation, is best
evidenced by a finding by the Division that the owner is not
maintaining such services. A review of Division records discloses
that this tenant has not filed any service complaints either prior
to or subsequent to the issuance of the order appealed herein.
Neither are there any rent reduction orders based on the owner's
failure to maintain services of a building-wide nature outstanding
nor have any heat/hot water complaints been filed by the tenants
either prior to subsequent to the issuance of the order appealed
herein. This determination is without prejudice to the right of
the tenant filing a service complaint with the Division, if the
facts so warrant.
The record discloses that with the exception of Certificate of
Electrical Inspection all necessary governmental approvals and
sign-offs plus supporting documentation (contract, contractor's
certification and cancelled checks) had been submitted during the
course of the proceeding, for the boiler/burner installation. In
addition, the tenants do not take issue with the quality or
effectiveness of said new heating system, which installation
satisfies the requirements of a major capital improvements.
In view of the fact that the owner has completed the application by
virtue of submitting the missing Certificate of Electrical
Inspection from the Bureau of Electrical Control and taking into
consideration all factors bearing on the equities of this
particular matter, the Commissioner is of the opinion and finds
that the owner is entitled to a rent increase adjustment of $2.63
per room, per month computed as follows: $43,000.00 less commercial
ADMINN. REVIEW DOCKET NO.: CC630435RO
tenants' share $11,932.50=$31,067.50 divided by 60 months=$517.79
divided by 197 rooms=$2.63. The approved increase of $2.63 per
room, per month is decreased by $0.76 per room, per month for rent
controlled tenants to reflect the tax abatement offset. Said
decrease will be in effect for the life of the tax abatement. Upon
expiration of the tax benefits, owner shall be entitled to restore
the rent to the full amount of the MCI increase. Said increase is
effective for rent stabilized apartments as of May 1, 1988, subject
to attached conditions, the first rent payment date 30 days after
the owner completed the instant application by virtue of the
submission to the Division of the requisite Certificate of
Electrical Inspection and effective for rent controlled apartments
as of the first rent payment day following issuance of this order
and opinion.
The rent stabilized tenants may pay any arrears in rent resulting
form this order to cover the period between the effective date of
the rent increase (May 1, 1988) provided for herein and the date of
issuance of this order of the Commissioner in twenty four equal
monthly installments subject to the statutory limitation on
collectibility of 6% of the July 1986 rent for the permanent
increase plus 6% for temporary arrears.
THEREFORE, in accordance with the Rent Stabilization Law and Code
and the Rent and Eviction Regulations for New York City, it is
ORDERED, that this petition be, and the same hereby is granted in
part; that the order of the Rent Administrator be, and the same
hereby is revoked; and that the rents of the stabilized and
controlled apartments, be, and the same hereby are, increased in
the manner and effective as hereinabove provided, subject to the
attached conditions made part of this order.
ISSUED:
JOSEPH A. D'AGOSTA
Deputy Commissioner
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