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.: DK210305RT
APPEAL OF
VALERIE CONNELL
RENT ADMINISTRATOR'S
DOCKET NO.: AI230019OM
PETITIONER
-------------------------------------X
ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On November 24, 1989, the above named petitioner-tenant timely
filed a petition for administrative review (PAR) against an order
issued on October 23, 1989, by a Rent Administrator concerning the
housing accommodations known as 400 Lincoln Place Apt. 2E,
Brooklyn, NY, wherein the Rent Administrator determined that the
owner was entitled to a rent increase based on the installation of
major capital improvements (MCIs).
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 September 2, 1986, by
initially filing an application for a rent increase based on the
installation of the following MCIs at a total claimed cost of
$115,969.25:
a) repiping;
b) new windows;
c) boiler;
d) pointing; and
e) new roof.
The tenant objected to the owner's MCI application, alleging among
other things, that the windows were not installed properly; and
that they were installed by a prior owner.
The landlord did not respond to the tenant's objections.
The DHCR conducted a physical inspection of the subject premises on
two (2) different occasions in 1987, wherein the inspector noted
that repeated attempts to gain access to the petitioner's apartment
failed.
ADMIN. REVIEW DOCKET NO. DK-210305-RT
On October 23, 1989, the Rent Administrator issued the order here
under review finding that installations for the total approved cost
of $70,400.00 qualified as MCIs, determining that the application
complied with the relevant laws and regulations based upon the
supporting documentation submitted by the owner, and allowing
appropriate rent increases for rent stabilized apartments.
In this petition, the tenant contends, in substance, that the
windows were installed by the previous owner in 1986; that the
stove does not work properly; and that the apartment is infested
with vermin.
The owner did not respond to the tenant's petition.
After a careful consideration of the entire evidence of record, the
Commissioner is of the opinion that the 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.
The evidence of record in the instant case indicates that the
issues raised on appeal, with exception to the ownership issue,
were not raised in the proceeding below and therefore, may not
receive consideration at this time pursuant to 9 NYCRR 2529.6.
Regarding the ownership issue, it is an established policy of the
DHCR to accept applications from new owners for MCIs made to its
premises prior to ownership when the previous owner has not filed
an application. In instances where the application was pending
prior to the change in ownership, the new owner is entitled to the
increase.
The Commissioner notes that this order and opinion is issued
without prejudice to the right of the tenant to file an apartment
services complaint with the DHCR which may result in a reduction
from the current rent, if the facts so warrant.
THEREFORE, in accordance with the Rent Stabilization Law and Code,
it is
ORDERED, that this petition 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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