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
APPEAL OF DOCKET NO. EH 120257-RT
FRIEDA SCHECHTER DOCKET NO. DI 130046-OM
ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On August 23, 1990, the above-named rent controlled tenant filed a
petition for administrative review of an order issued on August 10, 1990
by a District Rent Administrator concerning the housing accommodations
known as 111-09 76th Road, Forest Hills, New York, Apartment D5.
The administrator granted the owner's application based on the
installation of a major capital improvement, to wit the installation of a
new boiler/burner (the existing heating system was in excess of 30 years
of age) and necessary asbestos removal.
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.
On appeal, the petitioner-tenant alleges, in substance, that the subject
boiler could have been repaired rather than replaced; the asbestos removal
should not have formed a part of the MCI rent increase and that her rent
has been increased more than 15% and that this is in violation of the Rent
After careful consideration, the Commissioner is of the opinion that the
petition should be denied.
Rent increases for major capital improvements are authorized by Section
2202.4 of the Rent and Eviction Regulations for rent controlled
apartments. Under rent control, an increase is warranted where there has
been since July 1, 1970 a major capital improvement required for the
operation, preservation, or maintenance of the structure. The rent
increase is computed based on an amortization of the cash cost of the
improvement over five years or sixty months. In accordance with
established Division policy the collectibility of an MCI rent increase
cannot exceed 15 percent of the rent controlled tenant's current rent as
of the effective date of the order in any one year.
The record discloses that the Administrator properly applied these
principles to the owner's application. The boiler/burner installation
for which rent increases were allowed fits the above definition and the
cost thereof was substantiated by the owner.
DOCKET NUMBER: EH 120257-RT
Regarding the asbestos, it is and has been the policy of this Division
that asbestos removal when completed in conjunction with a boiler/burner
installation is an allowable MCI expense.
The Commissioner notes that the subject apartment's rent on record with
the Division indicates that the MCI rent increase falls well within the
15 percent MCI rent increase cap on collectibility as above indicated.
The Commissioner further notes that this order is issued without prejudice
to the right of the tenant to file a rent overcharge complaint with the
Division if the facts so warrant.
THEREFORE, in accordance with the provisions of the Rent and Eviction
Regulations for New York City, it is
ORDERED, that this petition be, and the same hereby is, denied, and that
the District Rent Administrator's order be, and the same hereby is,
JOSEPH A. D'AGOSTA
Acting Deputy Commissioner