STATE OF NEW YORK
DIVISION OF HOUSING AND COMMUNITY RENEWAL
OFFICE OF RENT ADMINISTRATION
92-31 UNION HALL STREET
JAMAICA, NEW YORK, 11433
-----------------------------------X ADMINISTRATIVE REVIEW
IN THE MATTER OF THE ADMINISTRATIVE DOCKET NO.: DI410062RT
Richard Azzolini and Elaine Hughes,
PETITIONERS DOCKET NO.: LCS000695OM
ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
The petitioner-tenants timely filed an administrative appeal
against an order issued on August 1, 1989, by the Rent
Administrator (92-31 Union Hall Street, Jamaica, New York)
concerning the housing accommodations known as 216 West 102 Street,
New York, 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 apartment windows at the premises.
The owner commenced this proceeding below by filing its MCI
application in August of 1985. In support of its application, the
owner submitted copies of the contract, contractor's certification,
affidavits, and cancelled checks.
The Rent Administrator issued the order here under review, finding
that the installations qualified as an MCI, 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 the rent stabilized and rent controlled
On appeal, the petitioner-tenants state, in substance, that the
cost of the installation is unreasonable and is in excess of
In response to the tenants' petition the owner contends, in
substance, that the cost per window in this application is even
less than that which J-51 allows and is certainly reasonable.
After a careful consideration of the entire evidence of record, the
Commissioner is of the opinion that this administrative appeal
should be denied.
ADMINISTRATIVE REVIEW DOCKET NO.: DI410062RT
Rent increases for major capital improvements are authorized by
Section 2202.4 of the Rent and Eviction Regulations for the rent
controlled apartments and Section 2522.4 of the Rent Stabilization
Code for the rent stabilized apartments. Under rent control, an
increase is warranted where there has been since July 1, 1970 an
MCI required for the operation, preservation, and 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.
It is the established position of the Division that the
installation of apartment windows, as in the instant case,
qualifies as an MCI.
The evidence of record in the instant case indicates that the owner
fully substantiated its application and correctly complied with the
application procedures for an MCI, and that the Rent Administrator
properly computed the appropriate rent increase. On the other hand,
the tenants have not submitted any evidence to prove that the
increase should be revoked.
The Commissioner further notes, as confirmed by the record that the
petitioner-tenants of apartment 7B and 7D were served with notice
of the instant application, but that they failed to respond
thereto. Fundamental principles of the administrative appeal
process and Section 2529.6 of the Rent Stabilization Code prohibit
a party from raising issues on appeal which were not raised below.
The tenants of said apartments could have raised the very issues
before the Rent Administrator which they now seek to raise for the
first time on appeal. Accordingly, the Commissioner is constrained
to foreclose consideration of these issues in this proceeding.
On the basis of the entire evidence of record, it is found that the
Administrator's order is correct and should be affirmed.
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 this administrative appeal be, and the same hereby
is, denied; and that the Administrator's order be, and the same
hereby is, affirmed.
Joseph A. D'Agosta