DK 110269-RT, DL 110237-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
APPEALS OF DOCKET NOS.:
DK 110269-RT, DL 110237-RT
MELO/HURTADO, DRO DOCKET NO.: BG 130049-OM
Premises: 39-25 65th Street
Forest Hills, New York
PETITIONER
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ORDER AND OPINION DENYING PETITIONS FOR ADMINISTRATIVE REVIEW
The above-named tenants timely filed Petitions 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 petitions.
The owner commenced the proceeding below by filing an application
for a rent increase based on a major capital improvement, o wit-
windows.
Each tenant was served with a copy of the owner's application and
was afforded an opportunity to review it and comment thereupon.
The petitioner-tenants did not file an objection to the owner's
application although afforded the opportunity to do so.
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 petitions for administrative review, the tenants requests
reversal of the Rent Administrator's order and asserts, that the
tenants should not bear the burden of the owner's investment
prospectively, that the window installation is defective and a
cold breeze enters the apartment.
The owner interposed an answer to the tenants' petitions which
contended, that the service complaint was not raised by the
petitioners before the Administrator although afforded an
opportunity to do so, that once a MCI rent increase is granted it
becomes a permanent part of the base rent.
After careful consideration the Commissioner is of the opinion
that these petitions should be denied.
DK 110269-RT, DL 110237-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, 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 will not entertain the tenants' assertion of
decrease in service which is raised for the first time on appeal.
The tenants was afforded an opportunity to file an objection
before the Administrator. The record in the instant case
indicates that the owner correctly complied with applicable
procedures for a major capital improvement and the Rent Ad
ministrator properly computed the appropriate rent increases. The
tenants have not established that the increase should be revoked.
As to the tenant's contention pertaining to the permanent nature
of the increases granted, the New York Court of Appeals has
concluded recently that the Rent Stabilization Law authorized this
Division to grant permanent rent increases for MCI's and that the
law does not limit the time during which the increases can be
imposed. In the Matter of Ansonia Residents Association, et al.,
v. DHCR, et al., 74 N.Y. 2d 604, 543 N.Y.S. 2d 397 (1989).
This order is issued without prejudice to the tenants' right to
file an application for a rent reduction based upon a decrease in
services, should the facts so warrant.
THEREFORE, in accordance with the Rent Stabilization Law and Code,
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 Rent Administrator's order be, and the same hereby
is, affirmed.
ISSUED:
JOSEPH A. D'AGOSTA
Deputy Commissioner
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