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.: EE120301RT
C.M. RASMUSSEN RENT ADMINISTRATOR'S
PETITIONERS : DOCKET NO.: BG130223OM
ORDER AND OPINION DENYING PETITIONS FOR ADMINISTRATIVE REVIEW
On May 16 and 24, 1990, the above-named petitioner-tenants filed
petitions for administrative review of an order issued on May 2,
1990 by a Rent Administrator concerning the housing accommodations
known as 35-40 83rd Street, Jackson Heights, New York, various
apartments, wherein the Administrator granted a major capital
improvement (MCI) rent increase for the subject controlled and
stabilized accommodations based on the installation of a new
The Commissioner has reviewed all the evidence in the record and
has carefully considered that portion of the record relevant to the
issues raised by the petition for review.
The owner commenced this proceeding on July 27, 1987 by filing an
application for an MCI rent increase. The owner indicated that the
boiler/burner was installed between May and June of 1982.
Several tenants submitted responses in which they raised objections
to a rent increase for the installation.
On May 2, 1990, the Rent Administrator issued the order here under
review, finding that the installation qualified as a major capital
improvement, determining that the application complied with the
relevant laws and regulations based upon the supporting
documentation submitted by the owner, and allowing a rent increase.
In these petitions one tenant (Gold) contends that the boiler was
installed prior to the tenant's occupancy of the subject apartment,
and that there was no mention of the boiler work on the tenant's
initial lease, or of the owner's intention to request an MCI rent
increase for it. The other tenant (Rasmussen) contends that no
rent increase is warranted because the application was filed more
than two years after the installation was completed.
After careful consideration, the Commissioner is of the opinion
that these petitions should be denied.
The Commissioner notes that the tenants' petitions do not challenge
the quality or adequacy of the improvement.
ADMIN. REVIEW DOCKET NOS.: EF110226RT & EE120301RT
Pursuant to Section 2522.4 of the Rent Stabilization Code, MCI rent
increases are not collectible during the term of the lease in
effect unless a specific provision in the lease authorizes an
increase during its term.
In this proceeding it is clear that the owner's application was not
pending before petitioner-Gold took occupancy of the apartment.
The petitioner-Gold indicated that her initial lease commenced on
January 6, 1984 while the owner did not file the MCI application
until July 27, 1987. This petitioner was afforded the same notice
as all other tenants in the building and is subject to the same
rent increase as other regulated tenants. The petitioner's
argument regarding lack of notice is not relevant. Since no
application was pending when the tenant took occupancy, the owner
was under no obligation to include specific mention of the
installation which later resulted in the instant rent increase.
Regarding the contention that the owner's application was filed
more than two years after the installation was completed, the
Commissioner notes that the owner's application was filed on July
27, 1987. The application was not time-barred as implementation of
the two-year limitation for filing major capital improvement rent
increase applications did not take effect until August 1, 1987 in
accordance with the provisions of Sections 2520.7 and 2527.11 of
the Rent Stabilization Code, as implemented by Advisory Opinions
87-1 and 87-3.
As to those tenants whose apartments were rent-controlled, the
Commissioner notes that there is no two year time limitation for
filing an application for a major capital improvement rent increase
in the Rent and Eviction Regulations.
THEREFORE, in accordance with the provisions of the Rent
Stabilization Law and Code, it is
ORDERED, that these petitions be, and the same hereby are, denied,
and the Rent Administrator's order be, and the same hereby is,
JOSEPH A. D'AGOSTA