STATE OF NEW YORK
DIVISION OF HOUSING AND COMMUNITY RENEWAL
OFFICE OF RENT ADMINISTRATION
92-31 UNION HALL STREET
JAMAICA, NEW YORK 11433
IN THE MATTER OF THE ADMINISTRATIVE : ADMINISTRATIVE REVIEW
APPEAL OF DOCKET NO.:DD 430200-RT
JAMES PETERS, DOCKET NO.: BD 430326-OM
ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On April 26, 1989 the above-named petitioner-tenant filed an
Administrative Appeal against an order issued on April 11, 1989 by the
Rent Administrator, 92-31 Union Hall Street, Jamaica, New York concerning
the housing accommodations known as 241 West 13th Street, New York, New
York, Apartment 15, wherein the Administrator granted major capital
improvement (MCI) rent increases for the controlled and stabilized
apartments in the subject premises based on the installation of a boiler
at the premises. The subject accommodations is rent stabilized.
The landlord commenced the proceeding below by filing its MCI application
in April 1987. The order of the Administrator appealed herein contains
the notation that various tenants complained that the boiler was replaced
by the former owner.
On appeal, the petitioner-tenant requests a reversal of the MCI order and
states, in substance, that the boiler was installed seven years ago by the
prior owner; that a used boiler was installed; and that adequate heat has
not been received.
After careful consideration of the entire evidence of record the
Commissioner is of the opinion that the Administrative appeal should be
Rent increases for major capital improvements are authorized by Section
2522.4 of the Rent Stabilization Code for rent stabilized apartments.
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.
With respect to the tenant's contentions, the record discloses that at the
time of filing the MCI application, there was no time limitation in which
to file such application. Neither is a present owner barred from
collecting a rent increase for an installation put in place under prior
ownership where an appropriate rental adjustment based on such
installation has not previously been granted. The record further shows
that the owner substantiated its application in the proceeding below by
DOCKET NUMBER: DD 430200-RT
submitting to the Administrator copies of contracts, invoices,
contractor's certification, cancelled checks, and the necessary
governmental approvals and sign-offs for the work in question while the
petitioner-tenant did not submit any documentary evidence in support of
its allegation that it was a used boiler.
The Commissioner notes that the petitioner herein raised no objection to
the quality or adequacy of the boiler while this proceeding was before the
Rent Administrator although afforded the opportunity to do so. Such
matters may not be considered for the first time on appeal under these
This determination is without prejudice to the right of the tenant filing
an appropriate complaint with the Division alleging the owner is not
maintaining all required services, if the facts so warrant.
THEREFORE, in accordance with the applicable provisions of the Rent
Stabilization Law and Code, and Operational Bulletin 84-1, it is
ORDERED, that the Administrative appeal be, and the same hereby is denied;
and that the Administrator's order be, and the same hereby is affirmed.
JOSEPH A. D'AGOSTA
Acting Deputy Commissioner