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.: EF230219RO
:
RENT ADMINISTRATOR'S
P.G.B. REALTY CORP. DOCKET NO.: BI230008OM
PETITIONER :
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ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
On June 14, 1990 the above-named petitioner-owner timely filed a
petition for administrative review (PAR) of an order issued on May
11, 1990, by a Rent Administrator, 92-31 Union Hall Street,
Jamaica, New York, concerning the housing accommodations known as
479 Ovington Avenue, Brooklyn, New York, various apartments.
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 September 1, 1987 by filing
a major capital improvement rent increase (MCI) application
predicated on the following installations:
(1) windows $12,235.00
(2) roof $ 3,700.00
(3) pointing and waterproofing $ 5,270.00
For a total claimed cost of $21,205.00.
The tenants did not submit an objection to the owner's MCI
application although afforded the opportunity to do so.
On May 11, 1990, the Rent Administrator issued the order here under
review, finding that the windows and the pointing and waterproofing
qualified as major capital improvements, determining that the part
of the application relating to said installations complied with the
relevant laws and regulations based upon the supporting
documentation submitted by the owner, and authorizing rent
increases for the rent controlled and rent stabilized apartments.
The Rent Administrator denied the installation of the roof (for not
being 3-ply), finding that this work did not qualify as a major
capital improvement.
In this petition, the owner contends, in substance, that the roof
resurfacing, along with new gutters and a new skylight, complies
with the Housing Code.
None of the tenants submitted an answer to the owner's petition.
ADMIN. REVIEW DOCKET NO.: EF230219RO
After careful consideration of the entire evidence of record, the
Commissioner is of the opinion that this petition should be
granted.
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 the Rent Stabilization
Code 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, preservation,
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.
Whereas the Administrator's determination was predicated on a newly
issued Policy Statement (90-6) the Commissioner notes that the
eligibility requirements of a roofing installation for MCI purposes
was effectively revised pursuant to Policy Statement 91-2, issued
February 26, 1991 and effective 30 days thereafter indicating that
a single ply roof cap of traditional asphalt materials will no
longer be considered eligible for a major capital improvement rent
increase. However, it was the policy of the DHCR that a roof cap
sheet of the type involved herein qualified as a new roof at the
time the work in question was performed.
The Commissioner further notes that the new gutters and skylight
were installed contemporaneously with and were directly related to
the roof installation. Based on the foregoing, the Commissioner
finds that the owner is entitled to an additional rent increase for
the roof, gutter and skylight installations which were previously
excluded from the total approved MCI cost.
Accordingly, the Administrator's order is modified as follows: the
owner is entitled to a rent increase of $9.55 per room, per month,
for rent stabilized apartments ($8.25 per room, per month,
previously approved rent increase + $1.30 per room, per month,
computed as follows: $3,700.00 installation claimed cost -
$1,275.39 commercial tenant share = $2,424.61 divided by 60 months
= $40.42 divided by 31 rooms = $1.30) and $7.31 per room, per month
for rent controlled apartments (reflecting a J-51 tax abatement
offset of $2.24 per room, per month modifying the previous J-51 tax
abatement of $2.00). Said additional increase of $1.30 per month
for stabilized apartments and $1.04 per room per month for
controlled apartments is effective for rent stabilized apartments
as of January 1, 1988 (the first rent payment date 30 days after
the owner completed the instant application by serving all affected
tenants with a copy thereof) and effective for rent controlled
tenants as of June 1, 1990 (the first of the month following
issuance of the Administrator's order).
THEREFORE, in accordance with the Rent Stabilization Law and Code,
and the Rent and Eviction Regulations for New York City, it is
ADMIN. REVIEW DOCKET NO.: EF230219RO
ORDERED, that this petition be, and the same hereby is, granted,
and that the Rent Administrator's order be, and the same hereby is,
modified in the manner and to the extent indicated above, and as so
modified said order be, and the same hereby is, affirmed; and it is
FURTHER ORDERED, that the tenants may pay any arrears in rent
arising as a result of this order and opinion in twenty-four equal
monthly installments.
ISSUED:
JOSEPH A. D'AGOSTA
Deputy Commissioner
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