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 NOS.:
NOEL GAYLE and FB 610338-RT
GEORGE GUTTNER, RENT ADMINISTRATOR'S
PETITIONERS DE 630119-OM
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 a petitions for administrative
review of an order issued on January 23, 1991, by a Rent
Administrator concerning the housing accommodation, known as
1471 Taylor Avenue, Bronx, New York, where n the Rent Adminis-
trator determined that the owner was entitled to a rent increase
based on a major capital improvement (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 May 15, 1989 by filing an
application for a rent increase based on a major capital improve
ment, to wit - new windows at a total cost of $35,379.00.
On July 14, 1989, 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
The tenant of Apartment 20 answered alleging various service
deficiencies in her apartment and the tenant of Apartment 16
alleged that the windows installation would entitle the owner to
a tax deduction, a savings on his fuel bill, and increase the
value of the building.
On January 23, 1991, the Rent Administrator issued the order here
under review finding that the installation qualified as a major
capital improvement, 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 controll d and rent stabilized apart-
In their petitions for administrative review, the tenants re-
quest modification of the Rent Administrator's order and allege
inter alia that the building needed new windows, that the
installation constituted routine maintenance, not an MCI, and
that since the installation is tax deductible, decreases the fuel
bill, and increases the value of the building, charging the
tenants is an unfair business practice.
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 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 Commissioner notes that the possibility that the owner's
decision to make major capital improvements might or might not
impact positively on his tax exposure, energy conservation
efforts, or protection of his investment bears no relevance to
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,
ORDERED, that these petitions be, and the same hereby are, denied
and that the Rent Administrator's order be, and the same hereby