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
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IN THE MATTER OF THE ADMINISTRATIVE : ADMINISTRATIVE REVIEW
APPEAL OF DOCKET NO.: DJ230352RO
:
YVONNE REDHEAD RENT ADMINISTRATOR'S
DOCKET NO.: BE230285OM
PETITIONER :
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ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
On October 16, 1989, the above named petitioner-owner timely filed a
petition for administrative review (PAR) against an order issued on
September 19, 1989, by a Rent Administrator concerning the housing
accommodations known as 427 Linden Blvd., Brooklyn, New York, wherein the
Rent Administrator determined that the owner was entitled to a rent
increase based on the installation of a major capital improvement (MCI).
The Commissioner has reviewed all of the evidence in the record and has
carefully considered that portion of the record relevant to the issues
raised by this administrative appeal.
The owner commenced this proceeding on May 5, 1987, by filing an
application for a rent increase based on the installation of new prime
windows at a total cost of $24,727.31.
The tenants objected to the owner's application, alleging that the owner
did not inform the tenants of his intentions to effectuate the MCI herein;
that the old windows were not in need of replacement; and that the
installation was performed merely to increase the value of the property.
On September 19, 1989, the Rent Administrator issued the order here under
review finding that the installation did not qualify as an MCI as it was
performed in two parts over a 14 month period or done in a "piecemeal"
fashion.
In this petition, the owner contends, in substance, that the work was not
completed in a piece-meal fashion but was done in two parts as the owner
lacked the resources to complete the job at one time; and that the first
half of the job was paid for and completed in August of 1982 (76 windows)
with the second half paid for and completed in October of 1983 (97
windows).
In response to the owner's PAR, the tenants' do not raise any objections
which involve the quality of the installation herein.
After a careful consideration of the entire evidence of record, the
Commissioner, is of the opinion that this petition should be granted.
ADMIN. REVIEW DOCKET NO.:DJ230352RO
It is the established position of the Division that the building-wide
installation of new thermal windows, to replace windows which are 25 or
more years old constitutes an MCI for which a rent increase adjustment may
be warranted, provided the owner otherwise so qualifies. Work of a piece-
meal nature or ordinary repairs and maintenance does not qualify as an MCI.
The evidence of record in the proceeding before the Administrator indicates
a clear intent on the part of the owner to complete a building-wide major
capital improvement as well as the financial constraints which caused the
work to be performed in the manner in which it was (within a 14 month
period). In this regard, the record contains copies of various cancelled
checks as well as paid promissory notes extending over a period of months.
Taking into consideration all factors bearing on the equities including the
size of the subject premises and the method in which the windows were
purchased and installed (the same supplier and contractor in both
instances) the Commissioner finds, based on the facts and circumstances of
this case and in accordance with administrative discretion, that the work
in question substantially complies with the requirements of an MCI.
Thus, the owner is entitled to a rent increase of $5.03 per room per month
computed as follows: $24,727.31 divided by 60 months = $412.12 divided by
82 rooms. Said increase shall be effective the first rent payment date 30
days after service of notice on the tenants for rent stabilized apartments
(February 1, 1989), and the first rent payment date after issuance of the
denial order for rent controlled apartments (October 1, 1989).
The tenants may pay any arrears resulting from this order to cover the
period between the effective dates of the increase provided for herein and
the date of issuance of this order, subject to the attached conditions, and
the statutory limitations on the annual collectibility of 6% of the April
1987 rent roll for the permanent increase plus 6% for temporary arrears
with respect to rent stabilized apartments and 15% of the October 1, 1989,
rent for rent controlled apartments. Any amounts above said limitations
are to be spread forward in future years subject to the same limitations on
collectibility.
THEREFORE, in accordance with the Rent Stabilization Law and Code, and the
New York City Rent and Eviction Regulations, it is
ORDERED, that this petition be, and the same hereby is, granted; that the
Administrator's order be, and the same hereby is, revoked; and that the
rents of the subject housing accommodations be and the same hereby are
increased as herein above provided subject to the attached list of
conditions made a part of this order.
ISSUED:
JOSEPH A. D'AGOSTA
Deputy Commissioner
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