DIVISION OF HOUSING AND COMMUNITY RENEWAL
OFFICE OF RENT ADMINISTRATION
GERTZ PLAZA
92-31 UNION HALL STREET
JAMAICA, NEW YORK 11433
------------------------------------X ADMINISTRATIVE REVIEW
IN THE MATTER OF THE ADMINISTRATIVE DOCKET NO.: EH230245RO
APPEAL OF
ZEIGELMAN ORGANIZATION
C/O ROSENBERG & ESTIS, P.C.
RENT ADMINISTRATOR'S
PETITIONER DOCKET NO.: DK230227OM
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ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On August 28, 1990, the above-named petitioner-owner filed a
petition for administrative review (PAR) of an order issued on July
24, 1990, by the Rent Administrator, concerning the housing
accommodations known as 101 Lincoln Road, Brooklyn, NY, various
apartments, wherein the Administrator denied the owner's
application for a rent increase which was based on the installation
of various major capital improvements (MCIs), because of an
outstanding rent reduction order.
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.
The owner commenced the instant proceeding by initially filing an
application for a rent increase based on the installation of an
intercom system, roof, pointing and waterproofing, asbestos removal
and pipe re-insulation at a total cost of $137,240.00.
On July 24, 1990, the Rent Administrator issued the order here
under review, finding that a building-wide rent reduction order
under Docket No. CG230048B, issued on April 20, 1989, is still in
effect.
In this PAR, the owner requests reversal of the Rent
Administrator's order and contends, in substance, that all of the
services that the owner previously failed to maintain have been
restored and the owner's MCI application should not be denied based
solely on the owner's failure to complete the ministerial act of
filing a rent restoration application.
In response to the petition, several tenants filed answers,
contending, in substance, that the new intercom system is
unnecessary as the old one was only five years old, the new
intercom system doesn't work, there are still leaks from the roof
and around the windows, the windows don't seal properly, the
ADMIN. REVIEW DOCKET NO. EH230245RO
entrance doors need to be repaired and the elevators are often out
of service.
After a careful consideration of the entire evidence of record, the
Commissioner is of the opinion that this petition should be denied.
A review of Division records discloses that the order of rent
reduction, based on a finding that there was a decrease in service
of a building-wide nature is still outstanding on the subject
property. No application for rent restoration with respect to said
docket has been filed by the owner with the DHCR and there has been
no finding by the Division that the owner restored the services
which formed the basis for the order issued under Docket No.
CG230048B, including any finding that the defective front entrance
door lock has been effectively repaired.
As codified in Sections 2523.4(a) and 2522.4(a)(13) of the Rent
Stabilization Code and further amplified in Policy Statement 90-8,
where there is an order in effect determining a failure to maintain
a building-wide service which resulted in a rent reduction, such
order will constitute a bar to an owner applying for or collecting
any rent increases. A subsequent restoration of rent based upon a
finding of service restoration will result in the prospective
elimination of this sanction.
THEREFORE, in accordance with the Rent Stabilization Law and Code,
it is
ORDERED, that this petition be and the same hereby is, denied and
that the order of the Rent Administrator be, and the same hereby
is, affirmed.
ISSUED:
LULA M. ANDERSON
Deputy Commissioner
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