FB 120255-RT, FC 110194-RT
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 NOS.:
FB 120255-RT;
GAIL FITZGERALD and FC 110194-RT
CATHERINE WHAN, RENT ADMINISTRATOR'S
DOCKET NO.:
PETITIONERS CF-130192-OM
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ORDER AND OPINION DENYING PETITIONS FOR ADMINISTRATIVE REVIEW
The Commissioner has consolidated these petitions as they involve
common questions of law and fact.
The above-named tenants, filed timely petitions for administra-
tive review of an order issued on February 5, 1991, by a Rent
Administrator concerning the housing accommodation, known as
41-41 44th Street, Sunnyside, New York, wherein the Rent Adminis
trator determined that the owner was entitled to a rent increase
based on major capital improvements (MCI).
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 the petition for review.
The owner commenced this proceeding on June 23, 1988 by filing an
application for a rent increase based on maj r capital improve-
ments, to wit - apartment and hall windows and new mailboxes at a
total cost of $43,472.00.
On December 19, 1988, the Division of Housing and Community
Renewal (DHCR) served each tenant with a copy of the application
and afforded the tenants the opportunity to review it and comment
thereupon.
Neither petitioning tenants filed any objections to the owner's
application although afforded the opportunity to do so.
On February 5, 1991, the Rent Administrator issued the order here
under review finding that some of the installations qualified as
major capital improvements, determining that the application
complied with the relevant laws and regulations based upon the
supporting documentation submitted by the owner, and allowing
appropriate rent increases for rent controlled and rent stabil-
ized apartments. The Rent Administrator disallowed any rent
increases based upon the installation of new mailboxes.
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In their petitions for administrative review, the tenants request
reversal of the Rent Administrator's order and allege that their
windows are defective.
After careful consideration the Commissioner is of the opinion
that this 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 and Section 2522.4 of the 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 Commissioner notes that neither petitioner raised any
objection to the quality or adequacy of the windows while the
proceeding was before the Rent Administrator. Accordingly, the
allegations raised for the first time now in administrative
appeal may not be considered herein.
The record in the instant case indicates that the owner correctly
complied with the application procedures for a major capital
improvement and the Rent Administrator properly computed the
appropriate rent increases. The tenants have not established that
the increase should be revoked.
This order and opinion is issued without prejudice to the ten-
ants' rights to file complaints based on a diminution of services
if the facts so warrant.
THEREFORE, in accordance with the Rent Stabilization Law and
Code, and the Rent and Eviction Regulations for New York City,
it is
ORDERED, that these petitions be, and the same hereby are, denied
and that the Rent Administrator's order be, and the same hereby
is, affirmed.
ISSUED:
ELLIOT SANDER
Deputy Commissioner
FB 120255-RT, FC 110194-RT
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