Docket No. DD 430165-RT
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 ADMINISTRATIVE REVIEW
APPEAL OF DOCKET NO.: DD 430165-RT
MATTHEW GADDIS, et al. DRO DOCKET NO.: BA 530036-OM
Premises: 134 Haven Avenue
PETITIONER Various apts., New York, N.Y.
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ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
The above-named tenants timely filed a Petition for Administrative
Review of an order issued concerning the housing accommodations
relating to the above described docket number.
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 the petition.
The petitioner indicated that he was acting as the tenants'
representative without obtaining written evidence of authorization
to file as such (2529.1)(b)(2). The Commissioner notes that the
instant petition will be treated as a jointly filed petition,
included are the parties who signed the petition.
The owner commenced the proceeding below by filing an application
for a rent increase based on a major capital improvement, o wit-
new boiler/burner.
Each tenant was served with a copy of the owner's application and
was afforded an opportunity to review it and comment thereupon.
Various petitioner-tenants filed an answer to the owner's applica
tion contending that the improvement made was maintenance of a
required service and not a capital improvement.
Thereafter, the Rent Administrator issued the order here under
review finding that the installation qualified as a major capital
improvement, determining that the application complied with the
relevant laws and regulations based upon the supporting documenta
tion submitted by the owner, and allowing appropriate rent in
creases.
In their petition for administrative review, the tenants requests
reversal of the Rent Administrator's order and asserts that the
boiler installation is necessary maintenance, that the boiler has
been known to malfunction, and that the date of installation is in
question.
The owner interposed an answer to the tenants' petition contend
ing, that the petition was not filed timely, that the Administra
tor was correct in issuing an order granting a rent increase, that
Docket No. DD 430165-RT
the tenants' assertions has no basis for reversal, that the
boiler/burner replacement is recognized within the schedule of
major capital improvements, that the plans for the boiler/burner
installation were approved by various governmental agencies, that
the date of installation is not in question as evidenced by the
documents submitted below.
After careful consideration the Commissioner is of the opinion
that this petition should be denied.
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, preserva
tion, 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.
The Commissioner notes, that the tenant's timely filed their
petition for administrative review, that the installation of a
boiler/burner has been established to qualify as an MCI. The
owner substantiated such installation by submitting to the
Administrator in the proceeding below documentation in support of
its application, including copies of the contracts, contractor's
certification, plans, governmental approvals and sign-offs, and
cancelled checks for the work herein.
The Commissioner will not entertain the tenants' assertion, that
the boiler malfunctions, which is being raised for the first time
on appeal.
On the basis of the entire evidence of record, it is found that
the Administrator's order is correct and should be affirmed.
This order is issued without prejudice to the tenants filing
complaints with this Division of decrease in services, if the
facts so warrant.
THEREFORE, in accordance with the Rent Stabilization Law and Code,
and the Rent and Eviction Regulations for New York City, it is
Docket No. DD 430165-RT
ORDERED, that this petition be, and the same hereby is, denied and
that the Rent Administrator's order be, and the same hereby is,
affirmed.
ISSUED:
ELLIOT SANDER
Deputy Commissioner
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