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.: DG210134RT
APPEAL OF
Salvatore Panno
RENT ADMINISTRATOR'S
PETITIONER DOCKET NO: AI230217OM
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ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
The above named petitioner-tenant timely refiled a petition for
Administrative Review (PAR) against an order issued on December 30,
1988 by the Rent Administrator (Gertz Plaza) concerning the housing
accommodations known as 10 Avenue P, Brooklyn, New York, apartment
3L, wherein the Administrator determined that the owner was
entitled to a rent increase based on various major capital
improvements (MCIs).
The owner commenced the proceeding by filing its MCI application in
September of 1986. Several tenants in the subject premises filed
responses to the owner's application. The petitioner-tenant,
however, did not file a response to the application although
afforded the opportunity to do so.
The Rent Administrator's order, appealed herein, granted a major
capital improvement rent increase predicated on the installations
of pointing/waterproofing, a new roof, new windows, building
entrance and vestibule doors, and a compactor at a total approved
cost of $156,266.00.
In this Administrative Appeal, the petitioner-tenant contends, in
substance, that the improvements were done to encourage the sale of
Co-ops; that the windows still do not function properly; and that
the improvements were not done by the present owner but by the
previous owner.
After a careful consideration of the entire evidence of record, the
Commissioner is of the opinion that this Administrative Appeal
should be denied.
Admin Rev. Docket No. DG210134RT
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 installations involved herein,
to replace old items the useful lives of which have expired, meet
the definitional requirements of major capital improvements.
The Commissioner notes that the petitioner-tenant herein raised no
objections to the quality or adequacy of the window installation
while this proceeding was before the Administrator although
afforded the opportunity to do so. Accordingly, pursuant to Section
2529.6 of the Rent Stabilization Code, the tenant's allegations may
not be considered now when offered for the first time on
Administrative Appeal. However, the owner is hereby directed to
correct any defective condition with the windows in apartment 3L
brought to its attention in writing, if it has not already done so
and the determination herein is without prejudice to the right of
the tenant filing as appropriate application with the Division for
a rent reduction based upon a decrease in services, if the facts so
warrant.
With respect to the tenant's contention that the improvements were
done by the previous owner of the subject premises, the
Commissioner further notes that the fact that a current owner is
applying for a rent increase for improvements done by a prior owner
does not constitute grounds to bar such owner from obtaining a rent
increase provided it is otherwise warranted and the prior owner did
not already receive a rent increase.
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 Rent Administrator's order be, and the same hereby is,
affirmed.
ISSUED:
JOSEPH A. D'AGOSTA
Deputy Commissioner
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