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.: CD130133RO
APPEAL OF
Jerry & Bea Spathas
RENT ADMINISTRATOR'S
PETITIONERS DOCKET NO: AH130092OM
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ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On April 11, 1988 the above-named petitioner-owners timely refiled
an administrative appeal against an order issued on January 7, 1988
by the Rent Administrator (92-31 Union Hall Street, Jamaica, New
York) concerning the housing accommodations known as 25-22 34th
Street, Long Island City, New York, various apartments, wherein the
Administrator granted major capital improvement (MCI) rent
increases for the controlled and stabilized apartments in the
subject premises based on the pointing and steam cleaning of the
premises. The Administrator disallowed expenditures for
waterproofing and stucco work performed on the building.
In this petition the owner contends that waterproofing and stucco
work was performed on the subject building, that documentation for
the work was provided, and that therefore, an MCI rent increase is
warranted.
After careful consideration, the Commissioner is of the opinion
that this petition should be deemed.
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
improvements 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.
Section 2522.4(a)(2)(ii) of the Rent Stabilization Code and Section
2202.4(e) of the Rent and Eviction Regulations permit a rent
increase for other work performed in conjunction with a qualifying
major capital improvement. Section 2522.4(a)(2)(ii) of the Code and
Operational Bulletin 84-4 (November 13, 1984) limit the application
of "concurrent improvements" to costs incurred within a reasonable
period of time of a qualifying major capital improvement and only
if it directly relates thereto.
The record in this case indicates that the waterproofing and stucco
work commenced on May 10, 1985 and was completed on May 30, 1985
and that the pointing commenced 16 months later on August 16, 1986
and was completed August 23, 1986. Since the waterproofing and
stucco work were not performed in conjunction with or within a
reasonable period of time from the qualifying MCI, i.e the
pointing, said work was properly disallowed by the Administrator.
THEREFORE, in accordance with the provisions of the Rent
Stabilization Code and the Rent and Eviction Regulations for New
York City, it is
ORDERED, that this petition be, and the same hereby is, denied, and
that the order of the Rent Administrator be, and the same hereby
is, affirmed.
ISSUED:
JOSEPH A. D'AGOSTA
Deputy Commissioner
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