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 ADMINISTRATIVE REVIEW
IN THE MATTER OF THE ADMINISTRATIVE DOCKET Nos.: FE610166RT,
APPEALS OF FE610167RT, FE610168RT,
VARIOUS TENANTS OF FE610169RT, FE610217RT
1718 GRAND AVENUE
BRONX, NEW YORK RENT ADMINISTRATOR'S
DOCKET NO.: CG630103OM
PETITIONERS
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ORDER AND OPINION DENYING PETITIONS FOR ADMINISTRATIVE REVIEW
The above-named petitioner-tenants timely filed Petitions for
Administrative Review (PARs) against an order issued on December
21, 1990, by the Rent Administrator (Gertz Plaza), concerning the
housing accommodations known as 1718 Grand Avenue, Bronx, New York,
various apartments, wherein the Rent Administrator granted a major
capital improvement (MCI) rent increase based on the installation
of new replacement windows, new boiler/burner and pointing.
Five tenants filed Administrative Appeals against the Rent
Administrator's order. These appeals are consolidated herein for
a uniform determination in this proceeding as they involve common
issues of law and fact.
The owner commenced the proceeding below on July 19, 1988 by filing
an application to increase rents for stabilized apartments based on
the installation of new replacement windows, new boiler/burner and
pointing. The tenants affected by the owner's rent increase
application were notified and were afforded an opportunity to
interpose answers. One tenant responded but the petitioners-
tenants herein did not file responses.
On December 21, 1990, the Rent Administrator issued the order here
under review finding that the installations qualified as major
capital improvements and granting appropriate rent increases for
rent stabilized apartments.
On appeal, the tenants contend, in substance, that several tenants
submitted responses to the owner's MCI application; that the new
boiler/burner was installed by the previous owner; that there is a
lack of heat and hot water; that the pointing work was not done;
and that the windows were not installed in a workmanlike manner so
they malfunction and as a result, cold air seeps into their
apartments.
ADMIN. REVIEW DOCKET NOS. FE610166RT ET AL
After a careful consideration of the entire evidence of record, the
Commissioner is of the opinion that these administrative appeals
should be denied.
Rent increases for major capital improvements are authorized by
Section 2522.4 of the Rent Stabilization Code for rent stabilized
apartments. 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 record in the instant case indicates that the owner correctly
complied with the application procedures for major capital
improvements and the Rent Administrator properly computed the
appropriate rent increase for those installations found to qualify.
The Commissioner notes, as confirmed by the record, that the
tenants of the subject premises were served by the Administrator
with notice of the instant application and that the petitioners
herein failed to respond thereto. Fundamental principles of the
administrative appeal process and Section 2529.6 of the Rent
Stabilization Code prohibit a party from raising issues on appeal
which were not raised below. The subject tenants could have raised
the very issues before the Rent Administrator which they seek to
raise for the first time on appeal. Accordingly, the Commissioner
is constrained to foreclose consideration of these issues in this
appeal proceeding.
The Commissioner further notes that the tenants of the subject
premises has since filed an application (Docket No. FA630135HW) for
a rent reduction for lack of heat and hot water and said
application was denied based on a physical inspection which
disclosed that heat and hot water services were being provided.
Based on the entire evidence of record, the Commissioner finds that
the Administrator's order is correct and should be affirmed.
THEREFORE, in accordance with the applicable provisions of the Rent
Stabilization Law and Code, it is
ORDERED, that these petitions be, and the same hereby are denied;
and that the Administrator's order be, and the same hereby is
affirmed.
ISSUED:
____________________
Joseph A. D'Agosta
2 Deputy Commissioner
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