OFFICE OF RENT ADMINISTRATION
                                     GERTZ PLAZA
                               92-31 UNION HALL STREET
                               JAMAICA, NEW YORK 11433

      APPEALS OF                             DOCKET NOS.:DG 210241-RT
                                          :              DG 210303-RT
            VARIOUS TENANTS,                             DH 210282-RT
                                                         DI 230041-RT
                            PETITIONERS   :              DI 210239-RT
                                             RENT ADMINISTRATOR'S 
                                             DOCKET NO.: ZBA 230144-OM

      The petitioner-tenants timely filed administrative appeals against an order 
      issued on July 7, 1989 by the Rent Administrator (92-31 Union Hall Street, 
      Jamaica, New York) concerning the housing accommodations known as 191 East 
      17th Street, Brooklyn, New York, various apartments, wherein the 
      Administrator granted major capital improvement (MCI) rent increases for 
      the controlled and stabilized apartments in the subject premises based on 
      the installation of new windows, and a boiler and burner at the premises.

      The owner commenced the proceeding below by filing its MCI application on 
      January 28, 1987.  In support of its application, the owner submitted 
      copies of the contracts, governmental approvals, contractors' 
      certifications and cancelled checks.

      Several tenants objected to the owner's MCI application, contending in 
      substance that the heat and hot water service was inadequate.

      The subject premises was physically inspected on June 16, 1989 wherein it 
      was found that the hot water service was adequate.

      On July 7, 1989, the Rent Administrator issued the order here under review, 
      finding that the installations qualified as MCI's, determining that the 
      application complied with the relevant laws and regulations based upon the 
      supporting documentation submitted by the owner, and allowing rent 
      increases for rent controlled and rent stabilized apartments.

      On appeal, the petitioner-tenants allege, in substance, that: A) the owner 
      did not install a new heating system; B) there is lack of heat and hot 
      water; C) the windows were not properly installed; and D) building services 
      are not adequate.

      In response to the tenants' petitions, the owner filed an answer stating, 
      in substance, that a) a new boiler was installed and governmental approvals 
      were submitted; b) there is always heat when necessary and hot water for 
      the whole building; c) the windows were repaired; and d) with regard to the 
      maintenance of building services, the tenants filed a complaint with DHCR 
      (Docket No. DH 230099-B) which was denied.


          DOCKET NUMBER: DG 210241-RT
      After a careful consideration of the entire evidence of record, the 
      Commissioner is of the opinion that these administrative appeals should be 

      The Commissioner notes that the installation of new windows, and a boiler 
      and burner qualifies for a major capital improvement rent increase.  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.

      The owner correctly complied with the applicable procedures for a major 
      capital improvement by submitting copies of the contracts, contractor's 
      statement, governmental approvals and cancelled checks.

      On the other hand, the tenants have not established that the rent increase 
      should be revoked.

      An inspection performed by the Division found that the boiler and burner 
      were operating properly.  A review of Division records discloses that there 
      were no outstanding heat or hot water complaints against the subject 
      premises nor were there any building-wide rent reduction orders based on 
      the owner's failure to maintain building-wide services in effect at the 
      time the order appealed herein was issued.

      This order and opinion is issued without prejudice to the right of the 
      tenants to file with this Division an application for a rent reduction 
      based on a diminution of services, if the facts so warrant.

      The Commissioner further notes that the petitioner-tenants raised no 
      objections to the installation of windows while this proceeding was before 
      the Rent Administrator although they were afforded the opportunity to do 
      so.  Accordingly, this issue may not be considered now when offered for the 
      first time on administrative appeal as this is not a de novo proceeding.

      Based on a preponderance of the evidence, the tenants' appeals must fail.

      THEREFORE, in accordance with the applicable provisions of the Rent 
      Stabilization Law and Code, the Rent and Eviction Regulations for the City 
      of New York, and Operational Bulletin 84-1, it is

      ORDERED, that the administrative appeals be, and the same hereby are 
      denied; and that the Administrator's order be, and the same hereby is 

                                           JOSEPH A. D'AGOSTA
                                       Acting Deputy Commissioner


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