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
IN THE MATTER OF THE ADMINISTRATIVE : ADMINISTRATIVE REVIEW
APPEALS OF DOCKET NOS.:CK 430054-RT
: CK 410055-RT
VARIOUS TENANTS OF CK 410056-RT
503 EAST 83RD STREET CK 410057-RT
NEW YORK, NY PETITIONERS : CK 410058-RT
------------------------------------X CK 410139-RT
CK 410155-RT
CK 420156-RT
RENT ADMINISTRATOR'S
DOCKET NO.: AL 430224-OM
ORDER AND OPINION DENYING PETITIONS FOR ADMINISTRATIVE REVIEW
Various tenants timely filed or refiled Administrative Appeals against an
order issued on October 19, 1989 by a Rent Administrator, 92-31 Union Hall
Street, Jamaica, New York, concerning the housing accommodations known as
503 East 83rd Street, New York, New York, Various Apartments, wherein the
Rent Administrator determined that the owner was entitled to a rent
increase based on a major capital improvement for both the controlled and
stabilized apartments in the subject premises based on the installation of
a new roof. Said order was issued after a review of supporting
documentation submitted by the owner and the tenant responses received
thereto.
It is noted that the tenants did not question the quality of the work
performed but merely argued that the maintenance of a roof is the owner's
responsibility the cost of which should not be borne by the tenants.
The Commissioner deems it appropriate to consolidate these administrative
appeals for determination under this order and opinion as they involve
common issues of law and fact.
In their petitions for administrative review, the tenants request reversal
of the Rent Administrator's order alleging 1) the installation of the new
roof was merely ordinary maintenance; 2) tenants responded indicating
objections which were pertinent to the owner's application, and 3) the
installation of the new roof should not be considered an addition to the
rental value of the building.
In answer to the tenants' petitions, the owner alleges that he has
completely replaced and insulated the roof as stated by law; and has
followed proper procedure in filing for a major capital improvement rent
increase.
After careful consideration the Commissioner is of the opinion that these
petitions should be denied.
DOCKET NUMBER: 430054-RT
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.
It is the established position of the Division that the installation of a
complete new roof surfaces (in the case herein) meets the definitional
requirements of a major capital improvement.
The record in the instant case includes a copy of an invoice, proposal and
cancelled checks, which indicates that the owner has complied with all
applicable procedures for a major capital improvement. The Commissioner
finds that the tenants' objections do not constitute a bar to an owner
obtaining a major capital improvement rent increase which is otherwise
warranted.
THEREFORE, in accordance with the provisions of the Rent Stabilization Law
and Code, and the Rent and Eviction Regulations for New York City, it is
ORDERED, that these petitions be, and the same hereby are, denied, and that
the order of the Rent Administrator be, and the same hereby is, affirmed.
ISSUED:
JOSEPH A. D'AGOSTA
Acting Deputy Commissioner
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