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 CH 130083-OM
ORDER AND OPINION DENYING PETITION FOR ADMINISTRATIVE REVIEW
The above-named tenant filed a timely petition for administra-
tive review of an order issued on August 23, 1991, by a Rent
Administrator concerning the building known as 89-17 Rutledge
Avenue, Glendale, New York, wherein the Rent Administrator
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 August 9, 1988 by filing
an application for a rent increase based on a major capital
improvement, to wit - a new boiler and burner at a total cost of
On January 11 and April 18, 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 thereupon.
The tenant filed an objection to the owner's application
alleging in substance, that the installations were the responsi-
ibility of the owner and not improvements and also objecting to
the permanent nature of the increase.
On August 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 stabilized apartments.
In her petition for administrative review, the tenant requests
reversal of the Rent Administrator's order and alleges that there
is inadequate heat in her apartment.
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 Stabilizati n Code for rent stabi-
lized 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 Commissioner further notes that that installation of a new
boiler/burner is not maintenance or repair but a major capital
This order and opinion is issued without prejudi e to the ten-
ant's right to file a complaint based on a diminution of
services if the facts so warrant.
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.
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