STATE OF NEW YORK
DIVISION OF HOUSING AND COMMUNITY RENEWAL
OFFICE OF RENT ADMINISTRATION
92-31 UNION HALL STREET
JAMAICA, NEW YORK 11433
----------------------------------x S.J.R. NO.: 5712
IN THE MATTER OF THE ADMINISTRATIVE ADMINISTRATIVE REVIEW
APPEAL OF DOCKET NO.:
c/o REALTY PROGRAM CONSLT. RENT ADMINISTRATOR'S
PETITIONER BG 130652-OM
ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On June 8, 1990, the above-named petitioner-owner, filed a Peti-
tion for Administrative Review against an order issued on May 3,
1990 by the Rent Administrator, 92-31 Union Hall Street, Jamaica,
New York concerning the housing accommodations, known as 37-03
95th Street, 95-08 37th Avenue and 3706 Warren Street, Jackson
Heights, New York, various accommodations.
Subsequent thereto, the petitioner-owner filed a petition in the
Supreme Court pursuant to Article 78 of the Civil Practice Law
and Rules requesting that the "deemed denial" of the petitioner's
administrative appeal be annulled. The proceeding w s then re-
mitted, by Court order, to the Division for consideration of the
petitioner's administrative appeal.
The Commissioner has reviewed all of the evidence in the record
and has carefully considered that portion of the record relevant
to the issue raised by the administrative appeal.
On July 29, 1987, the owner filed an application for Major
Capital Improvement (MCI) rent increases based n the installa-
tion of a new boiler and burner at the subject premises between
September, 1984 and October, 1986, at a total claimed cost of
$54,000.00. The owner submitted copies of various approvals and
permits for the work performed.
In response to the application, one tenant noted, in substance,
that the new boiler/burner was installed by the prior owner in
1984 over a period of three weeks.
On October 19, 1988, the owner was requested to submit proof of
payment (copies of checks and/or affidavits of cash paid or other
documentary evidence) of the claimed cost of the MCI. In re-
sponse, the owner submitted a letter from the contractor advising
that it had received payment in the amount of $54,000.00 for its
work at the subject premises.
On February 28, 1990, the owner was requested to submit, among
other things, a copy of Form B16A (Certificate of Approval for
Oil Burning Installation).
In response, the owner indicated that he was attempting to locate
the certificate and that he had been informed by the contractor
that all necessary forms had been filed. The owner further
indicated that he had contacted the Department of Buildings re-
garding the certificate but was unable to obtain any information.
On March 26, 1990, the owner was served with a Final Notice re-
questing, among other things, a copy of Form B16A and a copy of
the executed contract.
There is no indication in the record that the owner submitted a
reply to the notice.
In the order appealed herein, the Rent Administrator denied the
owner's MCI application based on the owner's failure to submit
the requested evidence.
In this petition, the owner indicated that it had filed the
necessary plans and applications in order to obtain the rein-
statement of the application for the issuance of the B16A
certificate and contended that the delay in issuing the certifi-
cate was an oversight by the Department of Buildings for which
the owner should not be penalized. The owner subsequently
submitted a copy of the certificate.
Various tenants submitted responses to the petition asserting,
among other things, that the owner should not be entitled to MCI
The Commissioner is of the opinion that this petition should be
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 t e Rent Stabiliza-
tion Law 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, preserva-
tion, 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 record shows that although the owner submitted a copy of the
Certificate of Approval (Form B16A) on appeal, the owner was
twice requested to submit a copy of the certificate during the
proceeding before the Rent Administrator and failed to do so.
Further, the owner did not submit any documentary evidence, e.g.
copies of the executed contract, bills, invoices, or cancelled
checks, to substantiate the claimed cost of the boiler/burner
installation. Accordingly, the Commissioner finds that the Rent
Administrator properly denied the owner's application for MCI
THEREFORE, in accordance with the Rent and Eviction Regulations,
and the Rent Stabilization Law and Code, it is
ORDERED, that this petition be, and the same hereby is, denied,
and the Rent Administrator's order be, and the same hereby is,