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
APPEAL OF DOCKET NO.: DK410250RO
:
KENNETH ROSENBLUM RENT ADMINISTRATOR'S
DOCKET NO.: BD410693OM
PETITIONER :
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ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
On November 30, 1989, the above named petitioner-owner timely filed a
petition for administrative review (PAR) against an order issued on
November 1, 1989, by a Rent Administrator concerning the housing
accommodations known as 212 Avenue B, New York, 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 April 30, 1987, by filing an
application for a rent increase based on the installation of a new
boiler/burner at a total cost of $35,000.00.
The Rent Administrator granted the application in part using the J-51
allowable costs schedule based on the contention that the owner failed to
submit sufficient evidence of payment.
The petitioner challenges the Rent Administrator's denial of the total
claimed cost of the installation contending, in substance, that
verification of payment was obtained from the contractor and the owner's
accountant.
After considering that portion of the record relevant to the issue raised
by this petition, the Commissioner is of the opinion that this petition
should be granted.
The evidence of record in the instant case indicates that in lieu of
submitting cancelled checks as verification of payment, the Rent
Administrator requested an affidavit from the contractor stating that the
claimed cost had been paid in full per notice dated August 8, 1989. On
August 30, 1989, said affidavit was submitted to DHCR. However, the Rent
Administrator disregarded the requested information.
It is the established position of DHCR to accept affidavits in lieu of
original documentation which would establish the validity of the owner's
application.
ADMINI. REVIEW DOCKET NO.: DK410250RO
Thus the MCI rent increase herein is recalculated as follows:
Total approved MCI costs are $35,000.00
Computation of Permanent Rent Increase (Rent Controlled and Rent
Stabilized)
1. Total approved MCI cost: $35,000.00
2. Commercial tenants share $(5,981.50)
of MCI cost
3. Net approved MCI cost $29,018.50
4. Amortization by 60 months $ 483.64
5. Total number of Rent Stabilized
and Rent Controlled rooms 95
6. Rent increase per room, per month $5.09
Computation of Retroactive increase (arrears for Rent Stabilized apartments
only)
$5.09 x 26 months of arrears = $132.34 per room
-collectible only until full amount is paid.
Supplementary Computation:
1. Cost of item benefitting $35,000.00
commercial tenants:
2. Yearly residents rents: a) $128,650.20
plus yearly benefitted
commercial rents: b) $ 26,520.00
Total $155,170.20
3. Benefitted commercial rents
divided by total rents 17.09%
4. Benefitted commercial tenants $5,981.50
share of MCI cost
Accordingly, the owner may collect the difference between the amounts
specified on the order issued under Docket No. BD410693OM and those issued
herein.
The tenants may pay any arrears arising as a result of this order and
opinion to cover the period between the effective date and the issuance of
the order herein, if applicable, in twenty-four equal monthly installments.
Current tenants are not required to pay arrears for the period prior to the
date they took occupancy.
ADMINI. REVIEW DOCKET NO.: DK410250RO
The Commissioner notes that as to any apartment which first became subject
to rent stabilized jurisdiction after the November 1, 1989, issuance date
of the Administrator's order, the additional rent increases provided for
herein are not collectible since the free market rent charged the first
rent stabilized tenant includes any and all services then being provided.
It is further noted that collection of said increases is subject to the
statutory limitation on the annual collectibility of 6% of the April, 1987
rent roll for the permanent increase plus an additional 6% for temporary
arrears with any costs over said 12% to be spread forward equally in future
years for rent stabilized apartments. As to rent controlled apartments
that are exempted from payment of temporary arrears, the statutory
limitation on the annual collectibility of the permanent increase is 15% of
the April, 1987 rent roll with any costs over said amount to be spread
forward equally in future years in the same manner previously mentioned.
THEREFORE, in accordance with the Rent Stabilization Law and Code, and the
New York City Rent and Eviction Regulations, it is
ORDERED, that this petition be, and the same hereby is, granted; that the
Rent Administrator's order be, and the same hereby is, modified, so as to
provide that the MCI increase be based upon the total claimed cost of
$35,000.00 which results in an additional increase of $2.61 per room, per
month for rent stabilized and rent controlled apartments; that the
retroactive arrears are increased by an additional $67.86 per room for rent
stabilized apartments only; and that in all other respects said order of
the Rent Administrator be, and the same hereby is, affirmed.
ISSUED:
JOSEPH A. D'AGOSTA
Deputy Commissioner
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