FD 130256 RO
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
-----------------------------------X
IN THE MATTER OF THE ADMINISTRATIVE ADMINISTRATIVE REVIEW
APPEAL OF DOCKET NO.: FD 130256 RO
Stratis Frantzis, RENT ADMINISTRATOR'S
DOCKET NO.: DF 130154 OM
PETITIONER
-----------------------------------X
ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On April 22, 1991 the above-named petitioner-owner filed a
Petition for Administrative Review against an order issued on
March 29, 1991 by the Rent Administrator, 92-31 Union Hall
Street, Jamaica, New York concerning housing accommodations known
as 95-05 41st Avenue, Elmhurst, New York, various apartments,
wherein the Administrator denied the application for a major
capital improvement (MCI) rent increase.
The owner commenced this proceeding on June 20, 1989 by refiling
an application for a rent increase based upon the following
claimed improvements: apartment windows, pointing/waterproofing
and painting and wallpaper.
Various tenants answered the application one of whom indicated
that the owner was charging an increase for the windows in
question despite the fact that no increase had yet been
authorized. The owner advised the Administrator on March 20, 1991
that some tenants were paying for the windows of their own
volition since they did not wish to be burdened with large
retroactive rent increases; and that when the order is granted
"all the necessary monetary calculations will be made with these
tenants". Submitted were copies of letters from tenants (3) who
had paid for the windows.
The Administrator's order, appealed herein, denied the
application upon a finding that the owner had improperly
solicited and collected rent increases for some of the work in
question without prior approval by the DHCR.
In this petition the owner reiterates, in substance, prior
allegations to the effect that some tenants not wishing to be
burdened by large retroactive rent increases and, through their
own volition, paid the increase without his solicitation; that at
no time was any increase imposed on the tenants; and that "if
there was proof from the DHCR that I, as the landlord, had
solicited monies for the MCI from the tenants, I could understand
the MCI order be denied." The owner further indicated that all
monies paid by the tenants were deducted from their rents and
presented statements from tenants as proof thereof.
After a careful consideration of the entire record, the
FD 130256 RO
Commissioner is of the opinion that this petition should be
denied.
Historically, the right of an owner to collect rent increases
predicated on work of a building-wide nature, such as major
capital improvements of the type involved herein, requires prior
approval by the administrative agency. Section 2202.1 of the
Rent and Eviction Regulation for New York City provides that
maximum rents may be increased or decreased only by order of the
Administrator. Section 2522.4 of the current Rent Stabilization
Code (5/87) (as well as the former Code) provides that an
application must be filed by the owner and by clear implication,
approval by the Division must be received prior to the imposition
of a rent increase, thereunder.
A review of the record shows that by letter dated September 5,
1989, written on an attorney's letterhead, and addressed to the
tenants of the subject premises, the owner stated that "as a
result of the installation of new windows in your apartment, the
rent shall be increased," setting forth the dollar amount,
"effective October 1, 1989" together with the newly calculated
rent amount. While statements from tenants regarding subsequent
adjustment of their rents were provided by the owner, it appears
from at least one tenant's statement, as well as the owner's own
statement submitted in the proceeding below, that not all tenants
were accorded a credit or adjustment in their rents as claimed.
Since the record clearly indicates that the owner both solicited
and collected rent increases from at least some of the tenants
for the windows in question, without prior DHCR approval, in
contravention of the express provisions of the rent law and
regulations, the Commissioner finds that the Administrator
correctly denied the owner's MCI application.
THEREFORE, in accordance with the Rent Stabilization Law and
Code, and 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 Rent Administrator's order be, and the same hereby
is, affirmed.
ISSUED:
JOSEPH A. D'AGOSTA
Deputy Commissioner
|
