STATE OF NEW YORK
DIVISION OF HOUSING AND COMMUNITY RENEWAL
OFFICE OF RENT ADMINISTRATION
92-31 UNION HALL STREET
JAMAICA, NEW YORK 11433
-------------------------------------X ADMINISTRATIVE REVIEW
IN THE MATTER OF THE ADMINISTRATIVE DOCKET NO.: DI610224RT
ANTONIO COLON RENT ADMINISTRATOR'S
DOCKET NO.: CL630214OM
ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On September 27, 1989, the above named petitioner-tenant timely
filed a petition for administrative review (PAR) against an order
issued on September 19, 1989, by a Rent Administrator (Gertz Plaza)
concerning the housing accommodations known as 1801 University
Avenue, Apt. 5E, Bronx, New York, wherein the Rent Administrator
determined that the owner was entitled to a rent increase based on
the installation of a major capital improvement (MCI).
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 this administrative appeal.
The owner commenced this proceeding on December 9, 1988, by filing
an application for a rent increase based on the installation of the
following MCIs at a total cost of $27,594.23: new boiler/burner
and new mailboxes.
The tenant did not submit an objection to the owner's MCI
application although afforded the opportunity to do so.
On September 19, 1989, the Rent Administrator issued the order here
under review finding that the installation of the new boiler/burner
qualified as an MCI, determining that the application pertaining to
said installation complied with the relevant laws and regulations
based upon the supporting documentation submitted by the owner, and
allowing rent increases for rent controlled and rent stabilized
tenants. Disallowed by the Administrator was the cost of the new
mailboxes based upon a finding that said installation did not
qualify as an MCI, resulting in the total approved cost of
In this petition, the tenant contends, in substance, that the
increase should be reversed because the heat and hot water supplied
to the tenants was inadequate last year (1988); and that the tenant
personally filed a complaint with the Central Complaint Bureau
concerning said problem.
ADMIN. REVIEW DOCKET NO. DI-610224-RT
In response to the tenant's petition, the owner contends, in
substance, that the new boiler/burner is providing adequate heat
and hot water; that the tenant never reported said complaint to the
owner; that no other tenants have made such complaints; that it is
perfectly willing to inspect the apartment and effectuate the
necessary repairs if access is provided at the appropriate time;
and that adequate services have been provided even in crisis and
shall continue to be provided given the opportunity to do so.
After careful consideration of the entire evidence of record, the
Commissioner is of the opinion that this petition should be denied.
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. It is the long-standing policy of
the Division that the installation of a new boiler/burner
constitutes a major capital improvement entitling the owner to an
appropriate rent increase.
The evidence of record indicates that notice was sent to all
tenants by DHCR yet no responses were received in the proceeding
below. Pursuant to Section 2529.6 of the Rent Stabilization Code,
the issues raised herein are not within the scope of the
Commissioner's review as they have been raised for the first time
Furthermore, the MCI herein was installed to alleviate the very
complaint that the tenant has alleged and, by the tenant's own
admission, the heat and hot water problem was a past experience.
This order and opinion is issued without prejudice to the right of
the tenant to file a complaint of service decrease with the
Division, if the facts so warrant.
THEREFORE, in accordance with the Rent Stabilization Law and Code,
ORDERED, that this petition be, and the same hereby is, denied, and
that the Administrator's order be, and the same hereby is,
Joseph A. D'Agosta