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 Nos.: DK410069RT,
APPEALS OF DK410070RT, DK410071RT,
VARIOUS TENANTS OF DK410072RT, DK410073RT,
205 WEST 10TH STREET DK410138RT
NEW YORK, NY
RENT ADMINISTRATOR'S
DOCKET NO.: CL430186OM
PETITIONERS
-------------------------------------X
ORDER AND OPINION DENYING PETITIONS FOR ADMINISTRATIVE REVIEW
The above-named petitioner-tenants timely filed petitions for
administrative review (PARs) against an order issued on October 13,
1989, by the Rent Administrator (Gertz Plaza), concerning the
housing accommodations known as 205 West 10th Street, New York, NY,
various apartments, wherein the Rent Administrator authorized major
capital improvement (MCI) rent increases for the installation of
new replacement windows and a new boiler/burner including hot water
heater.
The Commissioner deems it appropriate to consolidate these
petitions for determination as they involve common issues of law
and fact.
On appeal, the petitioners contend, in substance, that the old
windows and the boiler/burner were in good working condition and
thus did not require replacement; that some of the replacement
windows are inoperative and defective; that the windows in the
hallways were not replaced and that the costs of the installations
are excessive. The tenant of apartment 1C asserts that the room-
count for her respective apartment is incorrect. The tenant of
apartment 3C contends, in substance, that the rent increase granted
should neither be permanent nor exceed the statutory annual limit
of six percent.
In response to the petitions, the owner urges the denial of the
tenants' petitions stating, in substance, that it fully complied
with all the requirements for MCI increase eligibility.
After a careful consideration of the entire evidence of record, the
Commissioner is of the opinion that these petitions should be
denied.
ADMIN. REVIEW DOCKET NO. DK-410069-RT ET. AL.
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, 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. Piecemeal work
or ordinary repairs and maintenance does not constitute work for
which a rent increase adjustment is warranted under current and
past procedures.
It is the established position of the Division that the
installation of new replacement windows to replace windows which
are twenty-five years old or older as well as the installation of
a new heating system constitute major capital improvements for
which a rent increase adjustment may be warranted. The record in
the proceeding below discloses that the owner substantiated its
application by submitting to the Administrator documentation in
support thereof, including copies of the contracts, invoices,
cancelled checks and governmental approvals and sign-offs for the
installation and operation of the heating system. The
Administrator's order was issued after a physical inspection of the
premises which disclosed that the tenants' complaints had been
resolved or that the objections were groundless.
Accordingly, the Commissioner is of the opinion and finds that the
Administrator properly found that the work in question qualified as
a major capital improvement for which an appropriate rent increase
was granted based on the cost thereof.
With respect to the six percent rent increase limitation, the
Administrator properly determined the dollar amount of the monthly
rent adjustment in accordance with the total number of rooms in the
building as required by the Rent Law and Code. Nevertheless, the
collection of the rent increase granted is limited to and shall not
exceed 6% of the rent charged on the December, 1988 rent roll date
in any 12 month period with a similar limitation on the collection
of temporary arrears. The corresponding limitation for rent
controlled apartments is fifteen percent. Also, the New York Court
of Appeals has concluded that the Rent Stabilization Law authorized
this Division to grant permanent rent increases for major capital
improvements; and that the law does not limit the time during which
the increase can be imposed. In the Matter of Ansonia Residents
Association, el al., V. DHCR, et al., 75 N.Y. 2d 208, 551 N.Y.S. 2d
871 (1989).
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ADMIN. REVIEW DOCKET NO. DK-410069-RT ET. AL.
As to the tenant's assertion on appeal with respect to the room
count, the Commissioner notes that this claim was not raised in the
proceeding before the Administrator and is therefore inappopriate
for consideration at this level.
This order and opinion is issued without prejudice to the tenants'
filing complaints with the Division for service reductions and/or
rent overcharges, if the facts so warrant.
THEREFORE, in accordance with the applicable provisions of the Rent
Stabilization Law and Code, and the New York City Rent Law and
Regulations, it is
ORDERED, that these administrative appeals be, and the same hereby
are 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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