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 NO.:
PETITIONER DC 410218-OM
ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
On June 2, 1991, the above-named tenant, filed a petition for
administrative review of an order issued on May 30, 1991, by a
Rent Administrator concerning the building known as 140 East 7th
Street, New York, New York, wherein the Rent Administrator
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 March 24, 1989 by filing
an application for a rent increase based on major capital
improvements, to wit - burner/boiler, mailboxes, entrance doors,
a compactor at a total cost of $51,416.00.
On May 31, 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
Various tenants, but not the petitioner herein, responded
objecting to the increase alleging inadequate heat, lack of
security and compactor problems. Copies of the tenants' com-
plaints were mailed to the owner. In its letter of October 18,
1990, the owner advised that the tenants' complaints had been
addressed. An inspection conducted on April 30, 1991 reported
that the boiler, compactor, and building vestibule and entrance
door lock were all functioning properly.
On May 30, 1991, the Rent Administrator issued the order here
under review finding that 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 stabilized apartments.
No rent increases were authorized based on the installation of
new mailboxes in the same location.
In his petition for administrative review, the tenant requests
modification of the Rent Administrator's order and alleges that
the front door lock is easily broken and left unlocked and that
the boiler often does not function.
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 2522.4 of the Rent Stabilization Code for rent stabilized
apartments. Under rent stabilization, the improvement must gen-
erally be building-wide; depreciable under the Internal Revenue
Code, other than for ordinary repairs; required for the opera-
tion, 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 a major capital
improvement and the Rent Administrator properly computed the
appropriate rent increases. The tenant has not established that
the increase should be revoked.
The Commissioner notes that the same issues raised by the peti-
tioner for the first time on appeal were raised by other tenants
before the Rent Administrator who investigated the allegations
and based on two physical inspections conducted on January 31,
1991 and on April 30, 1991, found that the conditions were not as
The Commissioner notes that while the tenant questions the find-
ings of fact, the record clearly reflects those findings by
virtue of DHCR inspections which occurred on January 31, 1991 and
April 30, 1991.
This order and opinion is issued without prejudice to the ten-
ants' rights as they may pertain to an application to the
Division for a reduction of rent based upon a reducti n of ser-
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 Rent Administrator's order be, and the same hereby