STATE OF NEW YORK
DIVISION OF HOUSING AN COMMUNITY RENEWAL
OFFICE OF RENT ADMINISTRATION
92-31 UNION HALL STREET
JAMAICA, NEW YORK, 11433
IN THE MATTER OF THE ADMINISTRATIVE ADMINISTRATIVE REVIEW
APPEAL OF DOCKET NO.: DJ130280RT
VARIOUS TENANTS of 21-80 38th Street,
Astoria, New York RENT ADMINISTRATOR'S
PETITIONER DOCKET NO.: BD130069OM
ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
The petitioner-tenants timely filed an administrative appeal
against an order issued on July 19, 1989 by the Rent Administrator
(92-31 Union Hall Street, Jamaica, New York) concerning the housing
accommodations known as 21-80 38th Street, Astoria, 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 and hallway windows, pointing, steam cleaning,
waterproofing and lintel replacement at the premises.
The owner commenced this proceeding below by filing its MCI
application in April of 1987. In support of its application, the
owner submitted copies of the contracts, invoices, contractors'
statements, diagram and cancelled checks.
On appeal, the petitioner-tenants state, in substance, that all
repairs and replacements referred to in the MCI order were made
only to cure violations on the building and to support the owner's
plans to convert the building to cooperative ownership.
After a careful consideration of the entire evidence of record, the
Commissioner is of the opinion that this administrative appeal
should be denied.
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
ADMINISTRATIVE REVIEW DOCKET NO.: DJ130280RT
whose useful has expired.
It is the established position of the Division that the
installation of apartment and hallway windows, pointing, steam
cleaning, waterproofing and lintel replacement, as in the instant
case, qualifies as MCI. The fact that these installations were made
to eliminate a Housing Code violation or as part of a cooperative
conversion process does not bar an owner from receiving an MCI rent
increase otherwise warranted.
The Commissioner notes that Division records indicate that no rent
reduction order had been issued against the subject premises based
on the owner's failure to maintain services of a building-wide
nature nor was any such complaint pending at the time the order
appealed herein was issued. Additionally, no current immediately
hazardous conditions exist at the subject premises according to the
records of the New York City Department of Housing Preservation and
The evidence of record in the instant case indicates that the owner
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 increases should be revoked.
On the basis of the entire evidence of record, it is found that the
Administrator's order is correct and should be affirmed.
This order and opinion is issued without prejudice to the tenants'
right to file an application for a rent reduction based on any
current diminutions in services, if the facts so warrant.
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