STATE OF NEW YORK
DIVISION OF HOUSING AND COMMUNITY RENEWAL
OFFICE OF RENT ADMINISTRATION
92-31 UNION HALL STREET
JAMAICA, NEW YORK 11433
IN THE MATTER OF THE ADMINISTRATIVE : ADMINISTRATIVE REVIEW
APPEALS OF DOCKET NOS.:DG 210241-RT
: DG 210303-RT
VARIOUS TENANTS, DH 210282-RT
PETITIONERS : DI 210239-RT
DOCKET NO.: ZBA 230144-OM
ORDER AND OPINION DENYING PETITIONS FOR ADMINISTRATIVE REVIEW
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