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.: DJ130184RO
APPEAL OF
DEMETRIOS C. PAPPAS
RENT ADMINISTRATOR'S
DOCKET NO.: DH130054OM
PETITIONER
-------------------------------------X
ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On October 11, 1989 the above-named petitioner-owner timely filed
an administrative appeal against an order issued on September 19,
1989 by the Rent Administrator (92-31 Union Hall Street, Jamaica,
NY) concerning the housing accommodations known as 32-16 Crescent
Street, Queens, NY, various apartments, wherein the Administrator
denied major capital improvement (MCI) rent increases for the
controlled and stabilized apartments in the subject premises based
on the installation of a steel fence.
The Rent Administrator's order, appealed herein, stated that said
installation does not constitute an MCI but is considered as
repairs and maintenance.
On appeal, the petitioner-owner states, in substance, that the
installation of an iron fence around the building clearly satisfies
the criteria of 2522.4(2)(i) in that it is "depreciable"; it is for
the preservation and maintenance of the structure in that it keeps
out trespassers; it is an improvement to the building,
aesthetically and practically; it benefits all the tenants, and the
fence is of substantial quality consisting of wrought iron and
should not be considered merely a repair.
After a careful consideration of the entire evidence of record, the
Commissioner is of the opinion that this administrative appeal
should be denied.
ADMIN. REVIEW DOCKET NO. DJ130184RO
Rent increase for MCIs 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 an MCI 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 has been the long established position of the Division that the
replacement of a steel fence does not qualify as an MCI, but is
considered as normal repairs or maintenance.
On the basis of the entire evidence of record, it is found that the
Administrator's order is correct and should be affirmed.
THEREFORE, in accordance with the applicable provisions of the Rent
Stabilization Law and Code, the Rent and Eviction Regulations for
the City of New York, and Operational Bulletin 84-1, it is
ORDERED, that this administrative appeal be, and the same hereby
is, denied; and that the Administrator's order be, and the same
hereby is, affirmed.
ISSUED:
__________________
Joseph A. D'Agosta
Deputy Commissioner
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