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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
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IN THE MATTER OF THE ADMINISTRATIVE ADMINISTRATIVE REVIEW
APPEALS OF DOCKET NOS.:
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ELI BRAUDIE AND FI 110198-RT
OLGA AGASSO,
RENT ADMINISTRATOR'S
DOCKET NO.:
PETITIONERS CH 130083-OM
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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, timely filed petitions 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
$37,600.00.
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 of Apartment 1 did not file an objection to the
owner's application although afforded the opportunity to do so.
The tenant of the second floor apartment alleged service
deficiencies unrelated to the installation.
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
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documentation submitted by the owner, and allowing appropriate
rent increases for rent stabilized apartments.
In their petitions for administrative review, the tenants request
reversal of the Rent Administrator's order and allege that it is
the owner's responsibility to keep the property in good repair.
The tenant of Apartment 1 alleges inadequate heat and attaches
copies of her gas bills in substantiation of her allegation.
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 notes that the tenant of Apartment 1 raised no
objection regarding the adequacy or quality of the owner's
installation when this proceeding was pending before the Rent
Administrator. Accordingly, the Commissioner finds, pursuant to
Section 2529.6 of the Rent Stabilization Code, th t the allega-
tions made now, for the first time on administrative appeal, may
not be considered herein. The Commissioner further notes that
the record indicates that the installation of a new boiler/burner
is not maintenance or repair but a major capital improvement.
This order and opinion is issued without prejudi e to the ten-
ants' rights to file complaints 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 tenants have not established
that the increase should be revoked.
THEREFORE, in accordance with the Rent Stabilization Law and
Code, it is
ORDERED, that these petitions be, and the same hereby are, denied
and that the Rent Administrator's order be, and the same hereby
is, affirmed.
ISSUED:
ELLIOT SANDER
Deputy Commissioner
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